Financial Audited Dic15

Banco Agromercantil de Guatemala, S.A.
and Subsidiaries
Consolidated Balance Sheets

December 31, 2015 with corresponding figures for 2014
(Figures expressed in thousands of quetzales (Q) and thousands of U.S. dollars (US$),
as applicable)
2015
US$
2015
Q
2014
Q
381,698
414,071
2,121,150
2,913,252
3,160,342
16,189,404
2,888,737
3,984,909
14,380,315
11,445
3,822
8,862
5,033
2,111
33,989
17,141
112
2,999,434
87,354
29,168
67,636
38,415
16,114
259,418
130,828
853
22,892,784
74,752
32,582
79,501
37,242
15,126
274,193
134,486
853
21,902,696
1,980,715
15,117,547
14,624,934
638,862
2,401
4,876,028
18,325
4,423,230
18,882
22,657
32,775
17,639
277
2
2,695,328
6,927
172,924
250,153
134,629
2,111
19
20,571,736
52,872
151,758
271,092
134,586
2,222
18
19,626,722
69,613
2,702,255
297,179
2,999,434
20,624,608
2,268,176
22,892,784
19,696,335
2,206,361
21,902,696
7,241,927
55,273,063
50,157,256
(Note 2e)
Assets
Cash (note 4)
Investments, net (note 5)
Loan portfolio, net (note 6)
Accounts receivable from accrued
financial products (note 7)
Other accounts receivable, net (note 8)
Foreclosed assets, net (note 9)
Equity securities (note 10)
Other investments (note 11)
Property and equipment, net (note 12)
Deferred charges, net (note 13)
Goodwill
Total assets
Liabilities, Other Credit

Balances and Stockholders
Equity
Deposits (note 14)

Loans with other financial institutions
(note 15)
Financial obligations (note 16)
Accounts payable and accrued
financial expenses (note 17)
Other accounts payable (note 18)
Provisions (note 19)
Deferred income (note 20)
Non-controlling interest
Total liabilities
Other credit balances (note 21)
Total liabilities and other credit
balances
Shareholders equity (notes 22 and 23)
Contingencies, commitments, other
liabilities
and
memorandum
accounts (note 31)
See accompanying notes to the consolidated financial statements.

3
Banco Agromercantil de Guatemala, S.A. and Subsidiaries
Consolidated Statements of Income

For the year ended December 31, 2015 with corresponding figures for 2014
(Figures expressed in thousands of quetzales (Q) and thousands of U.S. dollars (US$),
as applicable)
2015
US$
2015
Q
2014
Q
(Note 2e)
Financial income (note 24)

Financial expenses (note 24)
Net financial income
225,936
(98,121)
127,815
1,724,428
(748,894)
975,534
1,567,515
(647,808)
919,707
Income and expenses from services,

net (note 25)
Net income form services
12,491
140,306
95,333
1,070,867
62,223
981,930
11,369
86,775
72,530
(13,078)
(200)
(99,815)
(1,530)
(119,085)
(21,038)
(1,909)
138,397
(94,194)
44,203
(14,570)
1,056,297
(718,926)
337,371
(67,593)
914,337
(680,187)
234,150
Other operating income and

expenses, net (note 26):
Operating income
Loan, accounts receivable and
securities loss provisions (note 6)
Operating expenses
Other income and operating
expenses
Gross operating margin
Administrative expenses (note 27)
Operating margin, net
Extraordinary income and expenses,
net (note 28)
Income and expenses from prior
periods, net (note 29)
Income before tax expense
Income tax (note 30)
Net income
Non-controlling interest
Net consolidated income
4,091
31,225
47,309
514
48,808
(9,912)
38,896
38,896
3,923
372,519
(75,654)
296,865
296,865
3,537
284,996
(60,842)
224,154
(1)
224,153
Consolidated Statements of Changes in Shareholders Equity

(Figures expressed in thousands of quetzales and thousands of U.S. dollars (US$), as
applicable)
2015
US$
2015
Q
2014
Q
(Note 2e)
Shareholders equity:
Paid-in capital (note 22):
Balance at beginning of year
Issuance of common stock
Balance at end of year
152,978
152,978
1,167,588
1,167,588
1,167,587
1
1,167,588
Additional paid-in capital (note 22):

Premiums on common stock
53,327
53,327
407,014
407,014
407,013
1
407,014
Equity reserves:
Legal reserve (note 3 k):
Transfer from retained earnings
15,036
1,506
16,542
114,758
11,497
126,255
104,131
10,627
114,758
Reserve for future dividends

(note 23 i):
Transfer to retained earnings
Balance at year end
Contingencies reserve (note 23 ii):
Transfer from retained earnings
(note 23 ii)
Transfer to allowance for valuation
of loan portfolio (note 6)
Disbursements of the year
Balance at year end
Income reinvestment reserve (note 23 iii)
Depreciation
83,513
(83,513)
-
11,604
88,565
114,381
6,551
50,000
50,000
(12,212)
5,943
(93,205)
45,360
(75,000)
(816)
88,565
755
(2)
753
5,763
(17)
5,746
5,782
(19)
5,763
Consolidated Statements of Changes in Shareholders Equity

(continued)
2015
US$
2015
Q
2014
Q
(Note 2e)
Asset revaluation reserve (notes 12

and 23 iv):
Asset revaluation
Depreciation for the year
3,619
(123)
3,496
27,619
(940)
26,679
28,480
65
(926)
27,619
Valuation of doubtful recovery assets

(note 23 v):
Balance at beginning and end of year
(6,348)
(48,447)
(48,447)
554
4,227
(10,265)
(1,338)
(784)
(10,209)
(5,982)
14,492
4,227
57,555
38,896
(31)
96,420
439,274
296,865
(233)
735,906
223,311
224,153
(245)
447,219
(1,506)
(11,497)
(10,627)
(6,551)
(50,000)
(50,000)
(2,024)
(13,018)
(2,049)
(15,449)
(99,361)
(15,636)
(15,013)
(15,818)
(25,148)
71,272
297,179
(191,943)
543,963
2,268,176
83,513
(7,945)
439,274
2,206,361
Gains or loss from changes in the market

value of investments available-for-sale
(note 23 vi):
Gains (losses) from changes in the
market value of the year
Retained earnings:
Net income
Effect for consolidation
Less:
Transfer to legal reserve
Transfers to contingencies reserve
(note 23 ii)
Compensations to directors and
employees (note 23 viii)
Paid dividends (note 23 vii)
Preferred stock dividends (note 23 vii)
Transfers from future dividends
reserve
Total stockholders equity
Consolidated Statements of Cash Flows

(Figures expressed in thousands of quetzales and thousands of U.S. dollars (US$),
as applicable)
2015
US$
2015
Q
2014
Q
(Note 2e)
Cash flows from operating activities:

Interest income
185,900
Comissions income
20,901
Service income
21,979
Interest expense
(88,782)
Services expense
(13,385)
Fee expense
(49)
Administrative expenses paid
(78,717)
Loss from title-securities negotiation (net)
(1)
Foreign exchange (net)
9,481
Investment securities:
Cash from disposals of investments
8,070,863
Investment acquisition
(7,993,351)
Loan portfolio:
Cash from amortization of loans
1,860,590
Disbursements for loans
(2,109,689)
Other investments:
Cash from disposal of other
investments
3,169
Acquisitions of other investments
(3,298)
Deposits:
Cash received from depositors
22,915,176
Disbursements for deposit withdrawals (22,848,294)
Loans with other financial institutions:
Cash from loans
453,552
Loans paid
(396,734)
Financial obligations:
Redemption or repurchase
(73)
Cash from sale of foreclosed assets
2,892
Income tax paid
(5,969)
Solidarity tax paid
(2,355)
Contributions to savings protection fund
FOPA (note 14)
(4,304)
Other income and expenses (net)
(6,638)
Net cash flows (used in) provided
by operating activities
(7,136)
Carried forward
(7,136)
1,418,861
159,527
167,750
(677,620)
(102,160)
(377)
(600,799)
(7)
72,366
1,386,608
137,226
171,651
(570,550)
(97,124)
(1,371)
(576,447)
1,141
44,838
61,599,812
(61,008,212)
41,012,654
(41,940,062)
14,200,714
(16,101,930)
14,059,733
(17,303,258)
24,186
(25,174)
20,608
(21,048)
174,897,099
177,887,695
(174,386,631) (176,262,625)
3,461,674
(3,028,019)
7,951,008
(5,730,820)
(557)
22,071
(45,556)
(17,972)
(10,598)
12,583
(58,253)
(15,273)
(32,848)
(50,667)
(27,262)
(65,441)
(54,469)
(54,469)
5,613
5,613
Consolidated Statements of Cash Flows (Continued)

2015
US$
2015
Q
2014
Q
(Note 2e)
Brought forward
Cash flows from investment activities:
Investments in equity securities:
Cash from disposal of investments
Disbursements for investments
Dividends received
Cash from sale of property and
equipment
Disbursements for purchase of property
and equipment
Net cash used in investment
activities
Cash flows from financing activities:
Dividends paid common stock
Dividends paid preferred stock
Share contributions income
Net cash used in financing
activities
Net decrease in cash and cash
equivalents
Cash and cash equivalents at beginning
of year
Cash and cash equivalents at end of year
(7,136)
(54,469)
302
(455)
761
2,303
(3,476)
5,808
11
5,613
129
(1,362)
5,011
85
61
(3,440)
(26,258)
(32,916)
(2,821)
(21,538)
(29,077)
(12,988)
(2,049)
-
(99,126)
(15,636)
-
(36)
(15,818)
2
(15,037)
(114,762)
(15,852)
(24,994)
(190,769)
(39,316)
432,931
407,937
3,304,288
3,113,519
3,343,604
3,304,288
Supplementary information
The following is a summary of cash and cash equivalents:
2015
US$
Cash (note 4)
Cash equivalents (note 5c)
381,698
26,239
407,937
December 31,
2015
Q
2,913,252
200,267
3,113,519
2014
Q
2,888,737
415,551
3,304,288
Notes to the Consolidated Financial Statements

December 31, 2015 with corresponding figures for 2014
(Figures expressed in thousands of quetzales and thousands of U.S. dollars (US$), as
applicable)
Operations
Banco Agromercantil de Guatemala, S.A. (the Bank) and its subsidiaries
Financiera Agromercantil, S.A. (the Financing Entity), Tarjeta Agromercantil,
S.A. (the Credit Card Company), Agrovalores, S.A. (the Brokerage Company),
Arrendadora Agromercantil, S.A. (the Lease Company), Agencia de Seguros y
Fianzas Agromercantil, S.A., and Asistencia y Ajustes, S.A. (hereinafter referred
to as the Group) are included in this following the regulations established by the
Superintendence of Banks of Guatemala, in order to prepare the accompanying
consolidated financial statements under the figure of controlling entity.
The Groups headquarters are located at: 7 avenida 7-30 zona 9, Guatemala City.
The Groups holding company is Grupo Agromercantil Holding, incorporated in
the Republic of Panama whose shareholders are BAM Financial Corporation with
40% (60% from 2014) of participation and Bancolombia (Panam), S.A. with 60%
(40% from 2014) of participation, both entities incorporated in the Republic of
Panama.
Description of Operations
The companies included in the consolidated financial statements were incorporated
under laws of the Republic of Guatemala, all to operate for an indefinite period of
time.
Banco Agromercantil de Guatemala, S.A. was incorporated on October 18,

2000 through Public Deed No. 179, as a result of the merger of Banco del Agro,
S.A., Banco Agrcola Mercantil de Guatemala, S.A. and Corporacin del Agro,
S.A.
The Bank is in the banking business and its operations are governed by the
following Guatemalan laws: Law of Banks and Financial Groups and, as
applicable, by the Organic Law of the Guatemalan Central Bank, the Monetary
Law, the Financial Supervision Law, the Law Against Money and Other Asset
Laundering and the Law to Prevent and Suppress the Financing to Terrorism.
The Financing Entity was incorporated through Public Deed No. 16 dated
March 18, 1996 as a private financing entity. Its entitled to perform all
operations of private financing corporations allowed by law, also known as
investing banks. The Bank holds an equity interest of 56.80%, the Lease
Company of 43.19% and the Brokerage Company of 0.01% in the Financing
Entity. Actually, the Financial Entity carries out transactions with investments
and no loan operations are performed.
The Credit Card Company was incorporated on May 29, 2000. Its main activity
consists of granting financing to third parties through credit cards for local and
international use. The Bank holds an equity interest of 98% and the Financing
Entity through the Bamer Mercom Trust, holds an equity interest of 2% in the
Credit Card Company.
The Credit Card Company has suspended its credit card operations since
several years ago; there are no plans to liquidate this company nor a date has
been defined to restart with its operations has not been defined. Total assets,
liabilities, equity, results of operations and cash flows of this company are not
significant in relation to the consolidated financial statements of the Group as
of December 31, 2015 and 2014.
The Brokerage Company was incorporated on October 6, 1987. Its main

activity consists of manage the investment portfolio of the Group. The Bank
holds directly an equity interest of 7.2% and the Lease Company holds an
equity interest of 92.8% in the Brokerage Company.
The Lease Company was incorporated on April 10, 1996. Its main activity
consists of grant property in rent, acting as lessor. The Bank holds an equity
interest of 99.90% and the Brokerage Company of 0.10% in the Lease
Company.
Agencia de Seguros y Fianzas Agromercantil, S.A. was incorporated on

January 8, 2003. Its main activity consists of acting to support to the entity
Seguros Agromercantil, S.A. (related company, qhich is not included in the
consolidated financial statements). The Bank holds an equity interest of 99%
in Agencia de Seguros y Fianzas Agromercantil, S.A., through the Lease
Company and the Brokerage Company holds an equity interest of 1%.
Asistencia y Ajustes, S.A. was incorporated on July 12, 2007. Its main activity
consists of acting to support to the entity Seguros Agromercantil, S.A. The
Bank holds an equity interest of 99% in Asistencia y Ajustes, S.A., through the
Lease Company and the Brokerage Company holds an equity interest of 1%.
The entities Agencia de Seguros y Fianzas Agromercantil, S.A. and Asistencia y

Ajustes, S.A. are not part of the regulated group (see note 33).
10

2
Basis of Preparation
The consolidated financial statements of the Group are prepared in accordance with
the following accounting policies considering their relative importance as
established by the Agreement No. 06-2008 of the Superintendent of Banks of
Guatemala. This agreement establishes that in relation to the homogenization of the
financial information if the nature of the operations or legal provision, it were not
possible to use uniform accounting policies in the preparation of consolidated
financial statements, such situations, if any, should be disclosed in explanatory
notes to the consolidated financial statements.
a
Statement of Compliance
The accounting policies used by the Group in preparing and presenting its
financial information are in accordance, in all significant aspects, with the
standard banking practice, regulated in Guatemala, and with the Accounting
Instructions Manual for Entities Subject to the Surveillance and Inspection of
the Superintendence of Banks (as per initials MIC in Spanish) approved by
Resolution of the Monetary Board JM-150-2006 and its subsequent
amendments (collectively refered to hereinafter Guatemala Banking GAAP).
The purpose of MIC is to standardize the accounting framework of all the
financial activities of the entities subject to supervision of the Superintendence
of Banks of Guatemala.
Additionally, these accounting policies and reports are regulated by the Law of
Banks and Financial Groups, the Monetary Law, the Financial Supervision
Law, the Law Against Money and Other Asset Laundering, the Law to Prevent
and Suppress the Financing to Terrorism and other laws applicable to its
activities; as well as by the provisions of the Monetary Board and of the
Superintendence of Banks of Guatemala.
The financial statements of the entities Agencia de Seguros y Fianzas
Agromercantil, S.A. and Asistencia y Ajustes, S.A. have been prepared using
accounting practices derived from the application of the Guatemalan Income
Tax Law and have not been converted to Guatemala Banking GAAP. The
effect of not converting these financial statements is not significant in relation
to the consolidated financial statements of the Group asand for the year ended
of December 31, 2015 and 2014.
Consolidation principles
The consolidation policies used for the preparation of the accompanying
consolidated financial statements of the Group are in accordance with the
Resolution No. 06-2008 Procedures for the Consolidation of Financial
Statements of Entities Integrating Financial Groups, dated February 18, 2008
issued by the Superintendence of Banks of Guatemala.
11

The consolidated financial statements of the Group include the assets,
liabilities, stockholders equity, results of operations, cash flows and
accompanying notes, of the entities that comprise the Group, which are
described in note 1.
The entities Mercom Bank Ltd. and Seguros Agromercantil, S.A. which form
part of the regulated group (see note 33) have not been included in the
accompanying consolidated financial statements as of December 31, 2015 and
2014.
In addition, the entities Agencia de Seguros y Fianzas Agromercantil, S.A. and
Asistencia y Ajustes, S.A. which do not form part of the regulated group (see
note 33), have been included in the accompanying consolidated financial
statements as of December 31, 2015 and 2014.
All significant balances and transactions among the companies of the Group
have been eliminated in the preparation of these consolidated financial
statements.
c
Basis of measurement
Financial and non-financial assets and liabilities are stated at cost, and certain
available-for-sale investments, at fair value. In addition, some non-financial
assets are stated at its revalued value (see notes 3c and 3e) and in the case of
foreclosed assets, at its adjudication value or in conformity with the indication
in note 3f.
Presentation currency
The consolidated financial statements are presented in quetzales (Q), the
functional currency of the Group and legal currency in Guatemala. At
December 31, 2015 the reference exchange rate provided by the Bank of
Guatemala (Central Bank) and the banking market rate was Q7.63 = US$1.00
(Q7.60 = US$1.00 in 2014).
Convenience Translation
Amounts as of December 31, 2015 and 2014 and for the years then ended,
translated into U.S. dollars (US$), are included solely for the convenience of
readers and the methodology used to convert such amounts is prescribed under
Guatemala Banking GAAP, where: balance sheet accounts are translated at
year-end exchange rate and the other financial statements accounts are
translated at average exchange rate of the year.
Translation has been made at the year-end exchange rate of Q7.63 per one U.S.
dollar (US$), as published by Banco de Guatemala (the Guatemalan Central
Bank) on December 31, 2015 (Q7.60 = US$1.00 in 2014) and the average
exchange rate used for 2015 translation was Q7.66 per US$1 (Q7.74% =
US$1.00 in 2014).
12

f
Use of estimates
In the preparation of the consolidated financial statements, the Groups
management has made a number of estimates and assumptions related to the
accounting policies and the amounts reported in assets, liabilities, results of
operations and the disclosure of contingent liabilities. Real results might differ
from those estimates.
The estimates that are particularly susceptible to significant changes are mainly
with the determination of the estimate for loan portfolio, valuation of
investment in securities, valuation of foreclosed assets and the recovery of
accounts receivable. The current economic environment has increased the
degree of uncertainty inherent to such estimates and assumptions.
Significant Accounting Policies

The information contained in the consolidated financial statements and its notes has
been prepared and is responsibility of the management of the Group. The
accounting policies summarized below were applied for the preparation and
presentation of these consolidated financial statements. These accounting policies
differ from international financial reporting standards (IFRS), mainly as
summarized in note 39.
a
Financial Instruments
A financial instrument is any contract that gives rise to a financial asset in one
entity and at the same time a financial liability or equity instrument in another
entity. Financial instruments include, among others: cash equivalents,
investments, loan portfolio, financial income receivable, accounts receivable,
deposits, loans obtained, financial obligations, other obligations, financial
expenses payable and accounts payable.
i. Cash Equivalents
Investments that are easily translated into cash and are due within three
months following to the date of the consolidated financial statements are
considered cash equivalents.
ii. Investments
The investments portfolio in securities consists of the following:
Available-for-sale securities
The initial accounting record is made at acquisition cost without
considering commissions and other similar charges incurred at the
acquisition.
13
Notes to Consolidated Financial Statements

The value of these investments is adjusted on a monthly basis based
on their market value in the stock exchange. Where there is no market
value, the value is determined based on regulations related to
valuation of investment securities. In cases where the securities are
issued by the Bank of Guatemala or the Ministry of Public Finance,
where no reference market value may be set, valuation is made at
acquisition cost.
Differences arising from price variances are recorded in equity. When
securities are sold, the gain or loss accrued in equity is recognized in
the years results of operations.
Held-to-maturity securities
Held-to-maturity securities are initially recorded at acquisition cost,
without considering fees and other similar purchase-related charges.
The book value of these investments is determined through the cost
method. Purchases, amortizations and maturities are recorded in
accounting on the transaction date.
Securities under repurchase/resell agreements

Investment securities that the Group holds under agreements to resell
are stated at acquisition cost.
Investment securities that the Group granted under agreements to
repurchase are withdrawn from the consolidated balance sheets
investments account and posted in memorandum accounts.
iii. Estimation for Investments Valuation

According to the existing regulations, the Group must record estimation
for valuation as a result of a risk analysis.
iv. Loan Portfolio
Loans and Others
In conformity with the MIC, the loan portfolio represents the amount
of loans granted by the Group in local and foreign currency, plusminus the exchange rate adjustment for loans in foreign currency. The
commissions perceived from and any incremental cost related to the
loans granted are recorded directly in the profit or loss of the year.
14

The balances of the accounts receivable for credit cards are divided
into cycles, which monthly cut-date are due in different days each
month. For monthly accounting closure purposes, the amounts for
purchases in establishments are recorded as accounts receivable in the
moment in which the transactions are performed by the cardholder.
Likewise, in the account extra-financing receivable are recorded the
consumptions like interest to be received. As the corresponding
quotas are due, they are transferred alongside with interests to the
accounts receivable from credit cards.
Estimate for Loan Portfolio and Accounts Receivable valuation
According to the Credit Risk Management Regulations, Resolution
JM-93-2005 dated May 23, 2005, the Group should record against the
years results of operations an allowance based on the valuation of its
portfolio of credit assets.
In cases where the legal limit as deductible expense for determining
the income tax expense is exceeded, this reserve may be recorded
directly against capital reserve accounts in stockholders equity.
The creation and maintenance of generic reserves or allowances,
along with the specific reserves or allowances must cover an amount
equal to 100% of the past due loan portfolio and shall in no event be
less than 1.25% of the total gross credit assets.
b
Permanent Investments
Permanent investments in shares are those where management has the intention
of maintaining equity in the issuers capital. Permanent investments are
accounted for using the cost method, irrespective of the Groups percentage of
equity interest in such enterprises. Income from these investments is recorded
only to the extent that retained earnings of the investee (where the investment
is held) are distributed after the acquisition date.
Permanent investments in foreign currency are accounted for at their equivalent
in quetzales, at the exchange rate in effect at the time of purchase and remain
recorded at the historical exchange rate, as required by MIC.
Property and Equipment

i. Acquired assets
Except for the revaluated fixed assets, property and equipment are
presented at cost,
15

ii. Revalued assets
Revaluated property and furniture are recorded at value provided by an
independent appraisal.
iii. Revaluation surplus
The revaluation surplus is included as part of equity crediting the
revaluation account.
iv. Disbursement subsequent to acquisition
Major replacements and improvements are capitalized, whereas minor
disbursements for repairs and maintenance not extending the useful
life of assets are recognized as expenses as incurred.
d
Depreciation
Property and equipment recorded at cost (except for land) and revalued assets
are depreciated on a straight-line basis, using the rates required by the tax law.
Depreciation percentages used were as follows:
%
Buildings at cost and revalued
Furniture and equipment
Computer equipment
Vehicles
Other
5
20
20
20
10
The depreciation expense is charged against profit or loss of the year, except
for the depreciation expense of revalued buildings, which is charged to the
assets revaluation reserve in equity.
Fully depreciated assets and accumulated depreciation are written-off from the
respective accounts and are controlled in memorandum accounts.
e
Amortization
Leasehold improvements are deferred and amortized on a straight-line basis at
an annual rate of 5%.
Foreclosed Assets
These correspond to property and equipment foreclosed by the Group due to
non-payment of secured loans.
Initially these assets are recorded at the outstanding principal amount plus
interest and expenses incurred in their foreclosure.
16

The value of these assets is updated through an independent appraisal, in a term
not exceeding three months after the foreclosure. If the appraisal is less than
the recorded amount, a reserve for valuation against the results of the year is
recorded, otherwise a profit pending to be realized is recorded in other credit
balances.
Foreclosed assets must be sold in a maximum period of two years from the
foreclosure date. If the sale is not made by this time, the assets must be offered
in public auction. In the event the assets are not sold in public auction, a new
auction is performed every three months; the basis price of the subsequent
auctions will be reduced each time by 10%.
If the basis price for the auction of a foreclosed asset is less than the book value,
a reserve equivalent to the difference between both values is recorded.
If the sale is settled in cash and the selling value is greater than the book value,
the difference is directly recorded in income for the year. If the sale is settled
in installments and the selling price is greater than the book value, the
difference is recorded as a deferred income, and income is recognized as
installments are collected.
If the selling price is less than the book value, the loss is recorded through profit
or loss, disregarding whether the sale is settled in cash or in installments.
Income, if any, from the sale of foreclosed assets is recorded on cash basis.
g
Severance Payments
In accordance with the Accounting Instructions Manual for Entities Subject to
the Surveillance and Inspection of the Superintendence of Banks of Guatemala,
the Group accrues, on a monthly basis provision against profit or loss, the
proportion equivalent to severance payment for labor relation finalization
whether, it is recognized to its employees according to what is established in
the Guatemala Labor Code, in collective bargaining agreements, entity specific
policies or, as applicable, individual employment contracts.
According to Guatemalan Laws, and as provided for by article 85 section (a)
of the Labor Code, employers are required to pay to their employees and
workers in case of unjustified dismissal, or to their beneficiaries in case of
death or, an indemnity equal to one month of salary for each year worked.
Periodically, the Group reviews and makes the necessary adjustments to keep
its provision for employee benefits updated.
17

Where the provision created exceed the maximum legal amount allowed as a
deductible expense for tax purposes, such excesses are directly recorded
against the reserve for future contingencies that forms part of stockholders
equity.
h
Income Recognition
Revenue earned from items other than those noted in the following sections i,
ii and iii is accounted for as income receivable and other credit accounts, as
applicable, and recorded as income only when effectively collected.
The following revenue is recorded in income through the accrual basis of
accounting:
i.
Interests accrued not yet collected on bonds or documents issued by the

Bank of Guatemala and securities of other issuers whose amortization
funds are controlled by the Bank of Guatemala;
ii.
Interests accrued on securities issued by foreign governments or foreign

central banks, having a minimum risk grade of A-3 for short term or
BBB- for long term, granted by Standard & Poors, or equivalent
grading granted by an international well-known credit rating agency;
and,
iii.
Interest, commissions, rents and other income on credit card, factoring

and financial leasing.
Accounting for revenue earned but uncollected in other credit accounts
is suspended when there is a delay in payment of thirty days for
investments in securities and ninety calendar days for the rest of the
transactions and services, from the day following that on which the
agreed-upon payments were due. When such suspension occurs,
revenue earned but not collected should be reversed from the relevant
balance sheet accounts.
For credit card operations, service fees and interests accrued are
recorded as accounts receivable and interest income on the monthly
cutoff dates. Revenue recognition is suspended when a delay in
payment of ninety-day has been incurred, starting as from the next day
of when the agreed or pledged payments should have been received.
When such suspension occurs, revenue earned but not collected should
be reversed from the relevant accounts; except for charges capitalized
in credit card accounts, which are not reversed.
Suspended balances, recorded in balance sheet and income statement
accounts as well as those earned as from the suspension date shall be
kept in memorandum accounts.
18

i
Declared Dividends
Dividends are declared as authorized by the General Shareholders Meeting,
whereby the capital reserves accounts and retained earnings are reduced and
an account payable is recorded. Payment is made in cash during the year in
which dividends are decreed.
The Superintendence of Banks, may limit banks, financial companies and
offshore entities from distributing dividends of any type or form, when, in the
opinion of such body and as a prudential measure, it is required to strengthen
the liquidity and/or solvency of such bank, financial company or offshore
entity. Such limitation shall not apply to shares with limited voting rights with
preferred dividends.
Remuneration to Employees
In conformity with the Social Deed of the Groups Companies, a remuneration
for employees is contemplated. The amount allocated is written off from
results from previous periods and recorded as an account payable. The
payment is made during the year in which this allocation is decreed.
Legal Reserve
In conformity with articles 36 and 37 of the Commerce code of Guatemala, all
partnership shall separate annually as minimum 5% of the net profits of each
exercise to record the legal reserve. This must not be distributed in any way
among the shareholders until the dissolution of the partnership. However, it
could be capitalized when exceeding fifteen percent (15%) of the paid in
capital the closure of the recently closed period, without detriment of continue
reserving the above-mentioned five percent (5%). The Groups records in the
current year 5% of the net profit of the previous year.
Reserve for Future Dividends

The Group record the amounts which, according to the Assembly of
shareholders of the companies, are separated from retained earnings, in order
to assure resources to cover the payments of dividends in the periods in which
profits are insufficient to reward shareholders for their invested capital.
Reserve for Contingencies

The contingencies reserve comprises the amounts which, in conformity with
the provisions of the Groups Stockholders Meeting, are segregated from
earnings for creating or increasing reserves that ensure the coverage of
unspecified or unforeseen events.
19

n
Assets and Liabilities in Foreign Currency

Foreign currency assets and liabilities are stated at their equivalent value in
quetzales, using the applicable exchange rate in accordance with the provisions
issued by the monetary authorities (see note 2d).
Transactions in Foreign Currencies

Transactions in foreign currencies are recorded at their equivalent value in
quetzales, using the exchange rate prevailing on the transaction date.
Foreign exchange differences, if any, that result between the date on which the
transaction is recorded and the date on which it is settled or the reporting date
are recorded in the results for the period.
Income Tax
Income taxes are the taxes expected to be paid on the years taxable income, at
the income tax rates in effect as of the balance sheet date and any other
adjustment of the tax payable with respect to previous years.
Provisions
A provision is recognized in the consolidated balance sheet where the Group
has a legal or implied obligation that arises as a consequence of past events and
will probably require a financial outlay to cancel such obligation.
The provision approximates its settlement value; however, it may differ from
the final amount.
New Regulations
Credit Card Law, Decree 7-2015
On December 3, 2015 Decree No.7-2015 issued by the Congress of the
Republic of Guatemala was published, containing the Credit Card Law
which has an objective to establish the legal framework to regulate
operations through debit and credit cards, purchase/sale transactions by this
way their and the relationships between issuer, operator, cardholders and
affiliated.
This Law abolishes article No. 757 of the Commerce Code of Guatemala,
Decree No. 2-70 of the Congress of the Republic which corresponded to
Credit Cards.
Decree No. 7-2015 will be in force three months after its publication in the
Official Journal (March 8, 2016).
The Bank as the issuer of credit cards will have to incorporate into their
operations, all the requirements and changes established by this new
regulation.
20

This law establishes a regime on how credit card issuers should act, on the
requirements that the credit card issuance contracts must contain, requires
retailers to require identification to the cardholder, the credit limit of users
and their extra financing may not exceed twice their monthly income, it is
obliged to restructure the debt of users when it reaches the hundred and
fifty percent of the credit limit, sets limits on interest rates and issuers will
be required to execute financial education programs.
Regulations on Operational Risk Management

On January 6, 2016 the Monetary Board approved the Resolution JM-42016 Regulations on Operational Risk Management, which has an
objective to regulate the minimum aspects that must be observed by banks,
financial entities, off-shore entities or off-shore entities authorized by the
Monetary Board to operate in Guatemala, and the companies specialized in
financial services that are part of a financial group, for the operational risk
management.
The operational risk management is the process of identifying, measuring,
monitoring, controlling, preventing and mitigating the operational risk.
The operational risk is the contingency that an entity could incur in losses
due to inadequacy or failure of processes, persons, internal systems, or due
external events. It includes technological and legal risks.
Institutions should implement policies, procedures and systems that permit
to maintain an adequate operational risk management, according to the
level of risk tolerance from the institution, considering its nature,
complexity and volume of its operations.
Institutions shall comply with the provisions of these regulations and shall
send to the Superintendence of Bank of Guatemala a manual for the
operational risk management approved by the Board of Directors and a
business continuity no later than January 31, 2017. In addition, no later
than June 30, 2018, shall implement the methodologies referred to these
regulations and submit the required information corresponding to the year
of 2017.
The Superintendence of Banks of Guatemala, at the justified request of the
party concerned, may extend each of the indicated up to twelve (12)
months, for a unique opportunity.
21

4
Cash
The summary of this account is as follows:
December 31
2015
2014
Q
Q
Local currency:
Cash
Central Bank legal deposits
Central Bank special deposits
Checks from other local banks
Local banks
Foreign currency:
Cash
Central Bank legal deposits
Central Bank special deposits
Checks and money orders from local and
foreign banks
Local banks
Foreign banks
629,093
1,150,374
66,367
130,240
63,512
2,039,586
506,411
1,104,934
65,054
128,531
44,107
1,849,037
65,768
581,497
27,448
74,479
562,900
24,316
50,199
6,668
142,086
873,666
2,913,252
42,658
2,929
332,418
1,039,700
2,888,737
The Financing Entity has to maintain a proportional fund equivalent to the amount
of financial obligations to reach at least the minimum amounts established by the
Monetary Board: 35% for obligations maturing up to thirty (30) days and 10% for
the obligations due more than thirty (30) days to a year.
Investments, net
December 31
2015
2014
Q
Q
Local currency:
Available-for-sale securities:
Bank of Guatemala term deposit certificates,
with maturity in 2017 (in 2015 for 2014)
(a and c).
Carried forward
510,323
510,323
616,200
616,200
22

December 31
2015
2014
Q
Q
Brought forward
510,323
616,200
Term deposit certificates issued by the

Ministry of Finance of the Republic of
Guatemala, with annual interest rate 6.625%
and 10.00% for both years and maturity
between 2016 and 2029 (2015 and 2029 in
2014).
650,495
1,181,824
Time deposit certificates issued by Bank of

Guatemala, with annual interest between
4.20% and 6.75% (3.25% and 6.75% in 2014)
and maturity between 2016 and 2022 (2015
and 2020 for 2014).
255,400
270,500
F.H.A. Mortgage Certificates with interest rate

fluctuating between 8% and 14% and
maturity between 2020 and 2034 for both
years.
1,897
2,003
Promissory note issued by Credomatic de

Guatemala, S.A., with annual interest rate of
6.5% for both years and maturity in 2016
(2015 for 2014).
Total available-for-sale securities
60,000
1,478,115
65,000
2,135,527
Held-to-maturity securities:
F.H.A. mortgage bonds, with annual interest
rates between 5.50% and 19.00% for both
years and maturities between 2016 and 2040
(in 2015 and 2039 for 2014)
Total held-to-maturity securities
Total local currency
Carried forward
814,947
814,948
2,293,063
2,293,063
717,745
717,746
2,853,273
2,853,273
23

December 31
2015
2014
Q
Q
Brought forward
2,293,063
2,853,273
Foreign currency:
Available-for-sale securities:
Guatemala bearing annual interest rate
between 4.25% and 5.875% in both years and
maturities between 2017 and 2027 in both
years.
574,363
685,977
Eurobonds bearing annual interest rate of

4.875% and 8.125% (4.375 and 8.125% in
2014) and maturities between 2022 and 2034
in both years.
290,745
329,512
Bonds with local financial institutions, with

annual interest rate of 5.50% with maturity in
November 2022.
955
1,013
Bonds with foreign financial institutions, with

annual interest rate of 2.95% with maturity in
January 2018 in both years.
Total available-for-sale securities
7,481
873,544
7,448
1,023,950
3,166,607
113,951
3,991,174
(6,265)
3,160,342
(6,265)
3,984,909
Repo operations:
Guatemala for US$15,000 bearing annual
interest rate of 1% and maturities in 2015.
Allowance on F.H.A. mortgage notes
a) As of December 31, 2015, the Bank has investments certificates deposit issued
by Bank of Guatemala for Q510,323 (Q616,200 in 2014), which are acquired
with discount on the par value. During the year ended December 31, 2015 the
Bank obtained Q36,962 (Q37,985 in 2014) which are collected upon maturity
of each title.
24

b) As of December 31, 2015, investment have maturity fluctuating from 2016 to
2040. Maturity in the next five years of these investments are summarized as
follows:
Q
2016
2017
2018
2019
2020 on wards
627,506
138,038
41,518
82,995
2,276,550
3,166,607
c) Cash equivalents are summarized as follows:

December 31
2015
2014
Q
Q
Financial promissory note issued by
Credomatic de Guatemala, S.A.
5,000
5,000

Bank of Guatemala
95,737
276,600
Bonds certificates
99,530
20,000
200,267
113,951
415,551
Repo bond certificate
d) The movement of the allowance of F.H.A. mortgage notes is summarized

as follows:
December 31
2015
2014
Q
Q
Plus:
Provision of the year charged to profit
and loss (nota 6)
(6,265)
(1,896)
(6,265)
(4,369)
(6,265)
25

6
Loan Portfolio, net

The summary of the loan portfolio by type of guarantee is as follows:
December 31
2015
2014
Q
Q
Local currency:
Fiduciary
Mortgage
Credits in monetary deposit accounts
Pledge- fiduciary
Credit cards
Pledge
Mortgage- fiduciary
Mortgage-pledge
Mortgage-pledge- fiduciary
Secured by own obligations
Factoring
Debtors of property sales
Foreign currency:
Fiduciary
Mortgage
Notes receivable
Credits in monetary deposit accounts
Secured by own obligations
Debtors of foreclosed assets
Pledge
Letters of credit payments
Credit cards
Mortgage- fiduciary
Mortgage-pledge
Pledge- fiduciary
Mortgage-pledge- fiduciary
Loan portfolio, gross
Less:
Valuation allowances:
Specific
Generic
Total allowances
Loan portfolio, net
2,251,195
2,045,186
1,504,585
250,406
931,718
90,062
888,227
4,423
62,839
68,263
1,619
31,844
8,130,367
1,602,224
1,887,793
1,270,475
218,826
1,136,145
77,435
917,107
2,671
114,037
109,877
2,037
27,024
7,365,651
3,274,923
1,490,140
878,713
270,497
23,119
7,372
25,031
77,609
84,466
1,179,784
717,412
88,180
226,681
8,343,927
16,474,294
2,844,715
1,303,624
924,077
267,757
27,786
7,498
28,572
106,106
88,097
850,231
670,855
106,030
44,780
7,270,128
14,635,779
(120,885)
(164,005)
(284,890)
16,189,404
(47,867)
(207,597)
(255,464)
14,380,315
26

The summary of the loan portfolio by status is as follows:
December 31
2015
2014
Q
Q
Local currency:
Current
Due:
In renewal process
In administrative collection
In legal collection
Foreign currency:
Current
Due:
In renewal process
In administrative collection
In legal collection
Total foreign currency
Loan portfolio gross
Less:
Specific
Generic
Total valuation allowance
Loan portfolio, net
7,965,426
7,203,342
54,361
548
110,032
164,941
8,130,367
83,538
3,683
75,088
162,309
7,365,651
8,280,591
7,263,910
871
57,878
4,587
63,336
8,343,927
16,474,294
1,279
124
4,815
6,218
7,270,128
14,635,779
(120,885)
(164,005)
(284,890)
16,189,404
(47,867)
(207,597)
(255,464)
14,380,315
The summary of the loan portfolio by category is as follows:

December 31
2015
2014
Q
Q
Local currency:
Major corporate debtors
Minor corporate debtors
Microcredit loans
Mortgage loans
Consumer loans
Carried forward
4,178,911
1,067,295
39,529
1,044,187
1,800,445
8,130,367
8,130,367
3,626,124
1,021,995
27,121
934,909
1,755,502
7,365,651
7,365,651
27

December 31
2015
2014
Q
Q
Brought forward
8,130,367
7,365,651
Foreign currency:
Major corporate debtors
Minor corporate debtors
Microcredit loans
Mortgage loans
Consumer loans
Total loan portfolio, gross
7,839,536
328,126
374
69,883
106,008
8,343,927
16,474,294
6,720,993
380,022
529
55,636
112,948
7,270,128
14,635,779
The summary of the loan portfolio by economic activity is as follows:

December 31
2015
2014
Q
Q
Local currency:
Consumer
Agriculture, livestock, forestry, hunting and
fishing
Exploitation of mines and quarry
Manufacturing industry
Electricity, gas and water
Construction
Commerce
Transportation and storage
Financial establishments, real states and
services provided to companies
Community, social and personal services
Transfers
Other destinations
Carried forward
2,661,759
2,486,534
363,543
31,435
610,900
392,302
793,674
1,726,367
176,538
273,637
47,796
538,333
322,452
505,013
1,745,274
134,538
1,001,383
189,990
1,021
181,455
8,130,367
8,130,367
949,406
181,409
1,512
179,747
7,365,651
7,365,651
28

December 31
2015
2014
Q
Q
Brought forward
Foreign currency:
Consumer
Agriculture, livestock, forestry, hunting and
fishing
Manufacturing industry
Electricity, gas and water
Construction
Commerce
Mining and quarrying
Transportation and storage
Financial establishments, real states and
services provided to companies
Community, social and personal services
Other destinations
Total loan portfolio, gross
8,130,367
7,365,651
160,307
152,123
1,978,096
1,395,012
1,745,443
611,016
1,816,095
7,616
50,266
1,525,553
1,117,914
1,163,740
415,985
2,221,498
83,138
482,497
81,982
15,597
8,343,927
16,474,294
516,560
57,156
16,461
7,270,128
14,635,779
The summary of the loan portfolio by geographic area is as follows:

December 31
2015
2014
Q
Q
Local currency:
Guatemala
Other Central America countries
Other countries
Foreign currency:
Guatemala
Other Central America countries
United States of America
Other countries
8,107,108
23,259
8,130,367
7,305,539
60,107
5
7,365,651
6,810,957
1,501,710
30,529
731
8,343,927
16,474,294
6,137,051
1,111,333
21,744
7,270,128
14,635,779
29

The summary of the loan portfolio by maturity is as follows:
December 31
2015
2014
Q
Q
Local currency:
Up to one year
From one to three years
From three to five years
Five years or more
Foreign currency:
Up to one year
From one to three years
From three to five years
Five years or more
1,221,372
2,144,510
1,823,723
2,940,763
8,130,368
1,103,691
1,514,922
1,915,433
2,831,605
7,365,651
2,064,558
685,057
898,184
4,696,127
8,343,926
16,474,294
2,331,042
693,285
777,702
3,468,099
7,270,128
14,635,779
The roll forward of the valuation allowance is summarized as follows:

Years ended as of
December 31
2015
2014
Q
Q
Add increases due to:
Provision of the year charged to profit or loss
Transfer from the contingencies reserve
Less charges for:
Doubtful accounts written off
Transfer to reserve for accounts receivable
255,464
208,678
93,102
93,205
441,771
102,850
75,000
386,528
(156,926)
45
(156,881)
284,890
(131,064)
(131,064)
255,464
30

The reconciliation of charges to results of the valuation allowances are summarized
below:
Years ended as of
December 31
2014
2015
Q
Q
Loan portfolio (note 6)
Accounts receivable (note 8)
Foreclosed assets (note 9)
Investments (nota 5)
93,102
565
6,148
99,815
102,850
128
11,738
4,369
119,085
Credit operations bear variable annual interest rates that range between the
percentages show below:
The Bank:
Loans portfolio in local currency
Loans portfolio in foreign currency
Credit card in local currency
Credit card in foreign currency
The Lease Company:
Local currency
Foreign currency
2015
%
2014
%
3.50 - 41.04
4.00 - 13.50
0.00 - 59.88
0.00 - 48.00
3.65 - 37.08
4.00 - 15.00
0.00 - 59.88
0.00 - 48.00
10.04 - 23.49
8.20 - 19.49
10.04 - 23.49
8.90 - 22.90
Accounts Receivable from Accrued Financial Products

December 31
2015
2014
Q
Q
Local currency:
Investments
Loan portfolio
Accounts receivable
Other investments
Carried forward
59,192
7,534
59
22
66,807
66,807
46,498
6,226
141
41
52,906
52,906
31

December 31
2015
2014
Q
Q
Brought forward
Foreign currency:
Investments
Loan portfolio
Accounts receivable
66,807
52,906
11,946
8,601
20,547
87,354
12,271
9,574
1
21,846
74,752
Other Accounts Receivable, net

December 31
2015
2014
Q
Q
Local currency:
Payments on behalf of third-parties under
management agreements
Prepaids
Difference in securities - securities for
repurchase transactions
Remittances
Security and maintenance
Other accounts pending liquidation
Insurance premiums
Service charges
Taxes, duties and contributions
Cash and securities missing
Other loan portfolio and accounts receivable
FHA awards
Other
Foreign currency:
Accounts receivable
Payments on behalf of others
Other
Total accounts receivable
Less: Valuation allowance
2,194
2,937
2,341
2,920
6500
3,880
97
1,091
1,340
728
1,311
171
4,572
1,983
1,242
28,046
4,331
356
702
1,478
698
2,706
204
5,442
2,016
4,179
27,373
958
313
1,038
2,309
30,355
(1,187)
29,168
1,009
5,268
194
6,471
33,844
(1,262)
32,582
32

The roll forward of the allowance for accounts receivable is summarized below:
Years ended as of
December 31
2015
2014
Q
Q
Balance at beginning of the year
Plus increase due to:
Provision for the year (note 6)
Transfer to reserve for accounts receivable
Less charges for:
Write-offs against the allowance
Others
Balance at the end of the year
1,262
565
(45)
520
(596)
1
(596)
1,187
2,096
128
128
(942)
(20)
(962)
1,262
Foreclosed Assets, net

December 31
2015
2014
Q
Q
Property
Investment securities
Equipment
Capitalized foreclosure cost
Less:
Valuation allowance
96,232
1,828
2,352
4,825
105,237
107,022
2,516
617
5,553
115,708
(37,601)
67,636
(36,207)
79,501
33

The accounting movement of valuation allowance of foreclosed assets is
summarized as follows:
Years ended
December 31,
2015
2014
Q
Q
Plus:
Provision of the year (note 6)
Loss in valuation
Less:
Release due to sale of foreclosed assets
Write-offs against the allowance
Revenue on foreclosed assets sales
Foreign exchange variation
Balance at the end of the year
36,207
32,819
6,148
290
6,440
11,738
11,738
(2,048)
(3,025)
27
(5,046)
37,601
(6,406)
(1,627)
(208)
(109)
(8,350)
36,207
34

10
Equity Securities
The summary of this account as of December 31, 2015 is as follows:
Share
percentage
Shares:
In local currency:
Seguros Agromercantil, S.A.
Imgenes Computarizadas de Guatemala, S.A.
Transacciones y Transferencias, S.A.
Asociacin Bancaria de Guatemala
Bolsa de Valores Nacional, S.A.
BAM Financial Corporation
Subtotal
Foreign currency:
Banco Latinoamericano de Comercio Exterior, S.A.
for US$11
Compaa de Procesamiento de Medios de Pago
Guatemala (Bahamas), S.A. US$1,534
Balance as of December 31, 2015
25
6.62
14.29
0.03
No. of
shares
12,800
881
2,428,681
144
1
18,011
Par value
per share
Q
1,000
1,000
1
5,000
10,000
1,238
20,028
1,376
2,429
720
21
272
24,846
89
3,678
9.13
Investment
cost
Q
7.63
13,480
38,415
35

The summary of this account as of December 31, 2014 is as follows:
Share
percentage
Shares:
In local currency:
Transferencias, S.A.
Imgenes Computarizadas de Guatemala, S.A.
Transacciones y Transferencias, S.A.
Asociacin Bancaria de Guatemala
BAM Financial Corporation
Subtotal
Foreign currency:
Banco Latinoamericano de Comercio Exterior, S.A.
for US$11
Compaa de Procesamiento de Medios de Pago
Guatemala (Bahamas), S.A. US$1,534
Balance as of December 31, 2014
25.00
40.00
6.62
2.96
-
0.03
No. of
shares
12,800
19,250
881
503,681
144
1
18,011
3,678
9.13
1,114
Par value
per share
Q
1,000
100
1,000
1
5,000
10,000
-
Investment
cost
Q
20,028
2,303
1,376
504
720
21
272
25,224
89
7.60
11,929
37,242
36

a) At December 31, 2015 and 2014, permanent investments in foreign currency
have been translated at the historical exchange rate in accordance with the
requirements of the accounting standards established by the Superintendence
of Banks of Guatemala.
b) The dividends received from the investments in shares are summarized below:
Entity
Compaa de Procesamiento de Medios de
Pago Guatemala (Bahamas), S.A.
Banco Latinoamericano de Comercio
Exterior, S.A.
Bam Financial Corporation
Others
Total dividends income (note 26)
11
Years ended as of
December 31
2015
2014
Q
Q
4,160
3,840
1,155
26
1,027
21
43
59
365
5,808
40
84
5,012
Other Investments
This account represents the amortization fund constituted for the service of the debt
for the authorized issuance of mortgage and pledge bonds I.
Debt service for the authorized issuance of mortgage bonds is constituted according
to the corresponding program and regulations authorized by the Monetary Board
(note 16).
December 31
2015
2014
Q
Q
Local currency:
Cash available from F.H.A. transactions
Bond certificates with annual interest rate of
9.5% (9% for 2014) and maturities in 2020
(in 2015 for 2014)
F.H.A. mortgage bonds with annual interest
rate of 11% and 14% for both years and
maturity between 2018 and 2019 for both
years.
11,969
10,941
4,000
4,000
145
16,114
185
15,126
37

12
Property and Equipment, net

Balances and movements of these accounts as of and for the year ended December 31, 2015 is summarized as follows:
Initial
balance
Q
Cost:
Land
Buildings
Computer equipment
Vehicles
Communications equipment
Other
Advances for asset acquisition and
constructions
Accumulated depreciation cost
Revaluated fixed assets:
Land
Buildings
Furniture
Accumulated depreciation on
revaluated buildings
Total
Additions
Q
Write-offs
Q
49,449
197,916
19,850
120,703
2,576
1,071
1,919
2,194
5,380
11,742
8
3,656
251
(3,187)
(8,979)
(168)
(19)
842
394,326
(147,752)
246,574
4,459
27,690
(36,797)
(9,107)
(665)
(13,018)
12,188
(830)
16,042
18,530
65
34,637
(7,018)
27,619
274,193
(940)
(940)
(10,047)
Transfers
Q
73
(3,971)
(3,898)
(3,898)
-
(830)
(3,898)
Final
balance
Q
49,449
200,110
22,043
123,466
2,489
4,727
2,151
665
405,100
(172,361)
232,739
16,042
18,530
65
34,637
(7,958)
27,619
259,418
During the year ended December 31, 2015, Q3, 971 were transferred to improvements to leasehold properties (see note
13).
38

The balances ad movement of this account as of and for the year ended December 2014 is summarized below:
Initial
balance
Q
Cost:
Land
Buildings
Computer equipment
Vehicles
Communications equipment
Other
Advances for asset acquisition and
constructions
Accumulated depreciation cost
Revaluated fixed assets:
Land
Buildings
Furniture
Accumulated depreciation on
revaluated buildings
Total
Additions
Q
Write-offs
Q
49,449
195,079
19,550
101,695
2,871
1,291
1,733
2,837
5,334
27,113
6
311
192
(5,034)
(8,105)
(449)
(531)
(6)
3,468
375,136
(128,714)
246,422
3,665
39,458
(33,047)
6,411
(2,966)
(17,091)
14,009
(3,082)
16,042
18,530
34,572
(6,092)
28,480
274,902
65
65
(926)
(861)
5,550
Transfers
Q
148
(3,325)
(3,177)
(3,177)
(3,082)
(3,177)
Final
balance
Q
49,449
197,916
19,850
120,703
2,576
1,071
1,919
842
394,326
(147,752)
246,574
16,042
18,530
65
34,637
(7,018)
27,619
274,193
During the year ended December 31, 2014, Q3,325 were transferred to improvements to leasehold properties (see note
13).
39

13
Deferred Charges, net

December 31
2015
2014
Q
Q
Improvements to leasehold properties a)
Intangible assets
Organization expenses
Less: accumulated amortization b)
Prepaid expenses:
Taxes, duties and contributions (note 30)
Services
Materials and supplies
45,866
423
318
46,607
(17,669)
28,938
41,876
423
318
42,617
(15,508)
27,109
46,537
51,564
3,789
101,890
130,828
43,821
58,396
5,160
107,377
134,486
a)
As of December 31, 2015, Q3,971 (Q3,325 in 2014) were transferred from

property and equipment to leasehold improvements (see note 12).
b)
The accounting movements of the accumulated amortization are the

following:
Years ended as of
December 31
2015
2014
Q
Q
Initial balance
Plus:
Amortization expense for the year
Less:
Write-offs of fully amortized assets
Transfer to accumulated
depreciation
Final balance
15,508
14,030
2,195
2,005
(34)
17,669
(524)
(3)
15,508
40

14
Deposits
December 31
2015
Q
Local currency:
Demand deposits
Savings deposits
Time deposits
Restricted deposits
Other deposits
Foreign currency:
Demand deposits
Savings deposits
Time deposits
Restricted deposits
Other deposits
2014
Q
4,155,148
2,595,266
3,780,744
48,511
14,723
10,594,392
3,870,029
2,498,400
4,054,393
44,491
9,524
10,476,837
1,421,585
767,283
2,326,444
5,760
2,083
4,523,155
15,117,547
1,527,872
778,543
1,836,032
4,727
923
4,148,097
14,624,934
Deposit operations bear annual interest rates fluctuating among the percentages
shown below:
December 31
2015
%
2014
%
Local currency:
Demand deposits
Savings deposits
Time deposits
0.00 - 5.00
0.00 - 6.50
0.75 - 8.25
0.20 - 5.00
0.45 - 6.50
0.50 - 8.25
Foreign currency:
Demand deposits
Savings deposits
Time deposits
0.00 - 4.00
0.00 - 2.75
0.50 - 7.25
0.25 - 4.00
0.25 - 2.75
1.00 - 7.25
41

a) Deposits are subject to banking reserves, which are calculated in local and
foreign currency as a percentage of the total amount of such deposits. This
banking reserve must be constantly maintained as demand deposits in Bank of
Guatemala, as cash funds in the cashiers of the banks, and when circumstances
require it, in liquid investments in title, title-securities, local or foreign, in
conformity with the regulations for this purposes issued by the Monetary Board.
The percentage of banking reserve on these demand deposits and financial
obligations in local and foreign currency is of 14.6% for 2015 and 2014 for the
Bank. Bank of Guatemala reimburses on cash balances integrating the
computable banking reserve.
b) As of June 1, 2002 the Law of Banks and Financial Groups, Decree 19-2002
came into effect. It provided for the creation of the Savings Protection Fund
(FOPA- from Spanish initials), which covers all deposits made at the Bank by
individuals and corporate entities up to Q20,000 or its equivalent in foreign
currency.
The quotas of the fixed component are the equivalent to a twelfth part of two per
thousand of the total of the demand deposits recorded by the Bank, during the
just preceding month.
On June 21, 2013 Monetary Board issued resolution No. JM-56-2013,
incorporating the calculation of the fixed component for the FOPA, the
calculation of the variable component, the rates applicable, as well as the
mechanism through which will be calculated the variable component of the quota
that banks must contribute in a monthly basis to the FOPA.
For the variable component, the quota that the banks must contribute in a
monthly basis to the FOPA, will be determined in function of the local or
national long term risk qualifications, granted by a risk assessment company,
recorded in the Superintendence of Banks, in conformity with article 58 Bis of
the Law of Banks and Financial Groups.
The applicable rate for calculating the variable component of the quota that the
banks are liable to contribute to the FOPA is established taking as reference the
assessment issued by Fitch Ratings, or else if the corresponding bank is not
assessed by this assessment entity, it will be taking as reference an equivalent
assessment issued by another assessment entity registered at the
Superintendence of Banks.
42

The variable component for the Bank is determined by fifty percent of a twelfth
one point twenty-five per thousand monthly average of the total of the deposit
liabilities recorded by the Bank, during the immediately preceding month. This
component of fifty percent is calculated for the period from July 2015 to March
2016.
The value determined by the variable component plus the corresponding value
to the fixed component will be the total amount of the quota to be contributed by
the banks in a monthly basis to the FOPA.
The Banks obligation to contribute such amounts ceases when the balance of
such contributions reaches five percent (5%) of the total bank deposits in the
national financial system.
During year ended December 31, 2015 the Bank made contributions to the
FOPA, recording them against profit or loss of the year for Q23,479 and
US$1,224 equivalent to Q9,370 (Q20,289 and US$901 equivalent to Q6,972 in
2014).
As of December 31, 2015, the third party deposit accounts include Q48,511 and
US$755 equivalent to Q5,760 (Q44,491 and US$622 equivalent to Q4,726 in
2014) seized by a court order.
43

15
Loans with Other Financial Institutions

At December 31, 2015, this account is summarized as follows:
Correspondent
BAC Florida Bank
Banco Centroamericano de Integracin
Econmica
Banco Mercantil Commercebank
Banesco U.S.A.
Bank of America, Merrill Lynch Miami
Banco Internacional de Costa Rica, S.A.
Deutsche Bank
Banco Latinoamericano de Comercio
Exterior, S.A.
Citibank, N.A. New York
Cobank
Cobank CCC
Commerzbank
Eastern National Bank
Israel Discount Bank
Scotiabank Canad
Standard Chartered Bank
U.S. Century Bank
Wells Fargo Bank
Banque de Commerce et de Placements
Deutsche Bank
Banitsmo, S.A.
Carried forward
Authorized
US$
Used
US$
11,000
30,000
6,000
5,000
15,000
4,000
30,000
20,000
52,382
20,000
49,000
17,418
6,442
5,000
10,000
30,000
10,000
40,000
2,990
10,886
10,000
385,118
Available
US$
Maturity
6,003
4,997
Indefinite
4,813
9,335
30,000
6,000
187
5,665
4,000
3,324
Indefinite
Indefinite
Indefinite
Indefinite
31/05/2016
Indefinite
26,676
20,000
43,660
7,108
41,574
11,807
5,148
8,136
9,548
30,782
224,590
8,722
12,892
7,426
5,611
1,294
5,000
1,864
30,000
452
9,218
2,990
10,886
10,000
160,528
Indefinite
30/11/2016
Indefinite
Indefinite
Indefinite
31/10/2016
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
44

Correspondent
Authorized
US$
Brought forward
385,118
224,590
160,528
Bancolombia, S.A
KBC Bank NV
Societe Generale
Banco del Bajio (L/C)
Sumitomo Mitsui Banking
10,000
5,443
500
450
15,000
416,511
14,273
238,863
10,000
5,443
500
450
727
177,648
Bank of America N.A. (a)

Nederlandse Financierings-Maatschappij Voor
Ontwikkelingslanden N.V. (FMO) y DEG Deutsche
Investitions UND Entwicklungsgesellschaft MBH(b)
Tranch A (b)
Tranch B (b)
Total in thousands of dollars of the United States
of America
Total in thousands in quetzals
300,000
300,000
10/04/2019
50,000
50,000
50,000
50,000
15/10/2019
15/10/2020
816,511
6,231,922
638,863
4,876,028
Letters credit - Stand By

Margin to draw (See note 31)
Used
US$
Available
US$
Maturity
Indefinite
Indefinite
Indefinite
31/12/2016
Indefinite
177,648
1,355,894
(130,109)
1,225,785
45
Notas a los Estados Financieros Consolidados

Correspondent
Bac Florida Bank
Banco Centroamericano de Integracin Econmica
Banco Mercantil
Banesco U.S.A.
Bank of America, Merrill Lynch Miami
Banco Internacional de Costa Rica, S.A.
Deutsche Bank
Banco Latinoamericano de Comercio Exterior, S.A. Bladex
Citibank, N.A. New York
Cobank
Cobank CCC
Commerzbank
Eastern National Bank
Israel Discount Bank
Scotiabank Canad
Standard Chartered Bank
Standard Chartered Bank (Colateral)
U.S. Century Bank
Wells Fargo Bank
Banque De Commerce Et De Placements
Bank of America, N.A. (a)
Nederlandse Financierings-Maatschappij Voor
Ontwikkelingslanden N.V. (FMO) y DEG Deutsche
Investitions UND Entwicklungsgesellschaft MBH
Tranch A (b)
Tranch B (b)
Total in thousands of dollars of the United States of
America
Total in thousands in quetzals
Authorized
US$
Used
US$
11,000
30,000
6,000
4,000
15,000
4,000
30,000
20,000
51,509
20,000
36,716
19,421
6,054
5,000
10,000
30,000
173
7,000
40,000
2,972
348,845
300,000
3,588
18,964
7,063
34,629
3,479
36,716
6,906
3,949
5,000
8,115
9,986
4,905
24,425
182,253
300,000
50,000
50,000
50,000
50,000
748,845
5,688,788
582,253
4,423,230
3,801
2,617
8,110
Available
US$
7,412
30,000
2,199
1,383
6,890
4,000
11,036
12,937
16,880
16,521
12,515
2,105
1,885
20,014
173
2,095
15,575
2,972
166,592
-
Maturity
30/04/2015
18/02/2015
31/08/2015
Indefinite
Indefinite
31/05/2015
Indefinite
Indefinite
31/07/2015
Indefinite
Indefinite
Indefinite
31/07/2015
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
10/04/2019
15/10/2020
15/10/2018
166,592
1,265,558
46

(a) Loan granted by Bank of America, N.A.
On April 10, 2014 the Bank subscribed a loan with Bank of America, N.A.
(Financial Entity) for three hundred million dollars of the United States of
America, (US$300 millions) with a term of 5 years, with fixed interest rate of
6.25% annual and interests payment on day 10 of the months of April and
October of each year beginning on October 10, 2014, and will be amortized to
total capital at maturity of the liability which is on April 10, 2019.
This financing agreement contains covenants for the Bank being the main ones
as follows:
To maintain current all the government approvals, permissions or licenses

of any governmental entity having jurisdiction on entities, its business or
the transactions contemplated in the contract.
To maintain books, accounts, and necessary records in order to comply

with the applicable laws and that allows the preparation of the financial
statements.
To provide access to the loaner entity and the administrative agent to its
books and records.
To maintain an office or agent in New York County, where the news and
demands towards the debtor regarding this contracts can be received.
Notify the loaner and administrative agent on any incompliance or

incompliance event to the conditions of the contract, as well as the actions
the debtor propose for solving the issue.
To deliver the loaner and administrative agent within a term of 120

subsequent to the end of each fiscal period, initiation with the fiscal period
ended as of December 31, 2014, a certification indicating that during the
period there has not been incompliance or incompliance event.
To provide the loaner within the 120 days following to the end of each
fiscal period: (i) consolidated financial information audited, including
statements of profit or loss, balance sheet, statement of cash flows and
notes related for the most recent fiscal periods; (ii) and English version of
the annual financial statements of the debtor and (iii) a summary of the
management comments on the results of the operations of the debtor and
its subsidiaries for the presented periods.
To provide the loaner within 60 days following to the final day of each
trimester, non-audited financial information, including statement of profit
and loss, balance sheet and its related notes.
47
Notes to the Financial Statements
Preserve and maintain current the existence and rights of the Bank and its
subsidiaries.
The debtor shall to merge, consolidate or transfer in one transaction or a

series of transactions, all substantially its assets and property to any person
unless:
-
The resulting entity, if different from the debtor is organized and existing
under the laws of Guatemala and assumes all obligations of the debtor,
being these:
(i) Pay the capital, premium and interests of the loan; and
(ii) Perform and observe all the obligations included in the documents
of the loan and any other signed document related to it.
The debtor or any successor entity is immediately, after the transaction

liable to comply with the loan and any other document signed related to
it.
The debtor shall deliver the loaner certification alongside with a

Guatemalan lawyer written opinion, in reasonable satisfactory way for
the creditors, confirming the occurrence of the merge, consolidation,
transference, confirming that the requirements are met.
(b) At December 31, 2013 the Group contracted a long term loan with Nederlandse
Financierings-Maatschappij Voor Ontwikkelingslanden N.V. (FMO) and DEG
Deutsche Investitions UND Entwicklungsgesellschaft MBH amounting to
US$100,000,000 distributed as follows:
Section A for US$50,000,000 with annual interest rate of 4.25% with an

initial payment of capital in the fifth year.
Section B for US$50,000,000 with annual interest rate of 4.0% with an

initial payment of capital in the third year.
This financial agreement contains the following covenants for the Group:
Equity adequacy ratio > 11%
Cost income ratio < 70% (as of March 31, 2016)
Assets exposure ratio < 20%
Exposure group exposure ratio < 30%
Exposure client exposure ratio < 15%
Loans with related parties ratio < 30%

48
Liquidity coverage > 100%
Financing net > 100%
Tier 1 equity ratio > 8%
Foreign currency without coverage ratio < 45%
(c) As of December 31, 2015 loans obtained earning interest rate that fluctuate
between LIBOR plus 1.85% and LIBOR plus 3.00% (LIBOR + 1.15% and
LIBOR + 2.00% in 2014) with fiduciary guarantee of the Bank.
(d) Credit lines with indefinite maturity are uncommitted revolving lines.
The amortizations of these loans for the next years is as follows:
2015
2016
2017
2018
2019
2020
16
2015
US$
255,529
16,667
33,333
316,667
16,666
638,862
Financial Obligations
December 31
2015
2014
Q
Q
Banco Agromercantil de Guatemala, S.A. (a):
Mortgage bonds II
Mortgage bonds I
Pledge bonds I
Financiera Agromercantil, S.A. (b):
Promissory note Agrofin I
17,061
174
28
17,263
17,527
176
28
17,731
1,062
18,325
1,151
18,882
a) The authorizations to issue the mortgage bonds BANAGRO II and pledge

bonds Banagro I are contained in the corresponding Resolutions of the
Monetary Board.
49

The total amount authorized is for up to Q1,000 million overall. Proceeds will
be used to finance operations authorized by the Banks and Financial Groups
Law.
Banking bonds have a general guaranty of the loans and collateral guarantees,
to which financing funding will be through placements and all the other Bank
investments and assets. The term is for up to twenty five (25) years, accruing
variable annual interest ranging between 0.25% and 7.25%.
The bonds will be amortized through annual payments according to the
amortization plans established for each series.
To service the debt, an amortization fund was created, which is represented by
other investments listed in note 11.
b) Financial liabilities correspond to the financial promissory notes issued by the
Financing Entity. Authorizations for the issuance of those promissory notes
are contained in the corresponding resolutions of the Monetary Board.
Issuances have an amount authorized for Promissory Notes Agrofin I for Q500
millions.
Promissory notes are secured with the assets of the Financing Entity and earn
a variable rate which ranges between 0.25% and 6% annual interest, and
maturities in 2016 (2015 for 2014).
To service the debt, an amortization fund was created equivalent to the 13.66%
of outstanding debt (16.04% for 2014), which is represented by other
investments listed in note 11.
17
Accounts Payable from Accrued Financial Expenses

December 31
2015
2014
Q
Q
Local currency:
Deposits
Foreign currency:
Deposits
Loans with other financial institutions
82,823
82,823
76,567
76,567
41,289
48,812
90,101
172,924
30,255
44,936
75,191
151,758
50

18
Other Accounts Payable

December 31
2015
201
Q
Q
Local currency:
Demand obligations
Obligations from issuance of documents
Income tax payable
Deferred income
Obligations for administration
Deposits as guaranty
Foreign currency:
Demand obligations
Obligations from issuance of documents
Deferred income
Obligations for administration
Deposits as guaranty
Other
19
54,119
32,813
75,366
32,582
18,344
4,883
218,107
55,989
52,348
60,528
32,411
17,463
3,067
221,806
2,928
19,951
4,851
168
4,141
7
32,046
250,153
1,967
35,412
8,577
310
2,782
238
49,286
271,092
Provisions

December 31
2015
2014
Q
Q
Bonuses
Severance provisions (a)
Other
7,555
121,139
5,935
134,629
7,157
121,594
5,835
134,586
51

(a) The movement of the provision for severance compensation is summarized as
follows:

Provision for the year
Payments applied to the provision
20
Years ended as of
December 31
2015
2014
Q
Q
121,594
117,853
20,078
19,376
(20,533)
(15,635)
121,139
121,594
Deferred Income
This account corresponds to income that the Group earned but have not yet been
received. The summary of this account is as follows:
December 31
2015
2014
Q
Q
Local currency:
Commissions
Income from services
Foreign currency:
Loan portfolio
21
1,837
225
2,062
1,921
226
2,147
49
49
2,111
75
75
2,222
Other Credit Balances

December 31
2015
2014
Q
Q
Local currency:
Investments
Loan portfolio
Commissions
Income from services
Accounts receivable
Capitalized income
Carried forward
14,326
7,382
449
1
4
22,162
20,429
42,591
42,591
30,832
6,100
967
6
7
37,912
19,867
57,779
57,779
52

Brought forward
Foreign currency:
Loan portfolio
Commissions earned but uncollected
Investments
Capitalized income
December 31
2015
2014
Q
Q
42,591
57,779
8,540
114
105
8,759
1,522
10,281
52,872
9,513
9
134
9,656
2,178
11,834
69,613
The total balance of financial income earned but not yet collected recorded in other
credit accounts, depending on the currency, is summarized below:
Local currency
Foreign currency
22
December 31
2015
2014
Q
Q
22,162
37,912
8,759
9,656
30,921
47,568
Paid-in Capital
December 31
2015
2014
Q
Q
Banco Agromercantil de Guatemala, S.A.:
Authorized capital of the Bank amounts to two
thousand
million
quetzales
(Q2,000,000,000) divided and represented
by 200 million of common shares with
nominal value of Q10 each. As of
December 31, 2015 and 2014 are
subscribed and paid 99,360,541 common
shares and 17,398,153 preferred shares
with nominal value of Q10 each for both
years
Carried forward
1,167,588
1,167,588
1,167,588
1,167,588
53

December 31
2015
2014
Q
Q
Brought forward
1,167,588
1,167,588
Agencia de Seguros y Fianzas, S. A.:

Authorized capital of the Company is
Q500,000 distributed in 500,000 common
shares with nominal value of Q1 each. As
of December 31, 2015 and 2014 subscribed
and paid capital amounts to Q100,000
distributed in 100,000 shares.
100
100
Asistencia y Ajustes, S.A.:

Authorized, subscribed and paid capital of the
Company amounts to Q5,000 divided and
represented by 100 common shares with
nominal value of Q50 each.
Financiera Agromercantil, S.A.:

Authorized, subscribed and paid capital is
represented and divided in 10,640 common
shares with nominal value of Q1,000 each.
10,640
10,640
Arrendadora Agromercantil, S.A.:

represented in 10,270 common shares with
nominal value of Q1,000 each.
10,270
10,270
950
950
539
1,190,092
539
1,190,091
Tarjeta Agromercantil, S.A.:

represented and divided in 9,500 common
shares of Q100 each.
Agrovalores, S.A.:
divided in 5,390 common shares with
nominal value of Q100 each.
Less: eliminations in consolidated equity.
Total authorized, subscribed and paid capital
after eliminations
(22,504)
1,167,588
(22,543)
1,167,588
Additional paid-in capital

As of 31 December 2015 and 2014 additional paid-in capital corresponds to
Q407,013 paid as premium on the common shares emissions since 2011 through
2014.
54

23
Capital Reserves
i. Future dividends reserve
This account represents an amount that, in conformity with the dispositions of
Shareholders Assembly, is separated from profit of previous periods, with the
purpose of securing resources to meet dividends payment in the periods in
which the profits are insufficient to repay the capital invested by the
shareholders.
During the year ended as of December 31, 2014 the Groups transferred
Q83,513 to earnings of previous periods, in conformity with the disposition of
Extraordinary General Assemblys Deed No. 7 of March 6, 2014.
ii. Contingencies reserve
In conformity with the Groups Stockholders Meeting, during the year ended
December 31, 2015, Q50,000 were segregated from prior years earnings to
increase the contingency reserves (Q50,000 in 2014).
In addition, the Board of Directors authorized to transfer: Q93,205 (Q75,000
in 2014) of the reserve for contingencies with the purpose of constituting the
generic reserves of the loan portfolio.
During the year ended as of December 31, 2014 the Bank cancelled the
contentious-administrative processes paying Q816 for the adjustments made
by the Superintendence of Tax Administration SAT (as per initials in
Spanish). For such effect the reserve for contingencies was used.
iii. Income reinvestment reserve
This account represents the reinvestment of profits in equipment in previous
years as part of the tax benefits allowed by the previous income tax law.
iv. Asset revaluation reserve
This account represents increases in asset values through appraisals performed
by independent appraisers.
v. Valuation of doubtful recovery assets
Through resolution JM-168-2008 of 2008, the Monetary Board suspended the
use of credits or debits to the valuation of assets of doubtful recovery accounts
in equity.
vi. Gains or losses from changes in the market value of available-for-sale
investments
This account represents accrued gains or losses from changes in the market
value of available-for-sale investments.
55

vii. Dividends
The dividends decreed in accordance with Acts of Shareholders of companies
listed as follows:
Entity
Arrendadora Agromercantil, S.A.
Financiera Agromercantil, S.A.
Agrovalores, S.A.
Agencia de Seguros y Fianzas
Agromercantil, S.A.
Asistencia y Ajustes, S.A.
Less:
Dividends eliminated through this
consolidation
Total paid
Years ended
December 31
2015
2014
Q
Q
114,996
3,327
745
337
15,818
2,568
958
-
1,980
188
121,573
2,500
21,844
(6,576)
114,997
(6,026)
15,818
viii. Compensations to employees
In conformity with the Social Deeds of the Banco Agromercantil de Guatemala,

S.A. and Subsidiaries it is contemplated compensation in favor of the employees.
The distributed percentage as of December 31, 2015 for employees was of 5.29%
(5.29% in 2014), calculated on the gross profit of the year ended as of December
31, 2014 (December 31, 2013 for 2014).
Entity
Agrovalores, S.A.
Agencia de Seguros y Fianzas
Agromercantil, S.A.
December 31
2015
2014
Q
Q
14,910
406
60
21
14,265
419
38
15
45
7
15,449
261
15
15,013
56

24
Net Financial Income

The summary of the income and expenses generated by the financial operation are
shown below:
Years ended as of
December 31
2015
2014
Q
Q
Financial income:
Interest income:
Loan portfolio
Investments
Cash equivalents
Fees:
Loan portfolio
Securities negotiation
Receivable accounts
Difference in price of repo operations
Others
Total financial income
Financial expenses:
Interest expense:
Deposits
Uncollected revenue
Loans obtained
Financial liabilities
Other financial expenses:
Additional benefits
FOPA formation quote
Title-securities negotiation
Difference in price of repo operations
Commissions brokerage
Commissions
Total financial expenses
Net financial income
1,284,266
273,939
3,941
1,562,146
1,173,601
249,512
4,270
1,427,383
116,080
6,567
734
3,334
35,567
162,282
1,724,428
126,043
1,712
790
1,288
10,299
140,132
1,567,515
(480,909)
(129)
(205,643)
(1,170)
(687,851)
(433,856)
(180)
(163,792)
(1,878)
(599,706)
(11,815)
(32,848)
(3,877)
(2,740)
(209)
(9,554)
(748,894)
975,534
(10,403)
(27,262)
(3,010)
(280)
(208)
(6,939)
(647,808)
919,707
57

25
Net Income from Services

The summary of the income and expenses from service is shown below:
Years ended as of
December 31
2015
2014
Q
Q
Income:
Commissions
Account management
Leases
Related insurance services
Other
Total service income
Expenses:
Commissions
Net income from services
26
144,235
23,939
428
9,370
30,641
208,613
138,332
24,627
452
8,457
400
172,268
(113,280)
95,333
(110,045)
62,223
Other Operating Income and Expenses

Summary of other operating income and expenses is shown below:
Years ended as of
December 31
2015
2014
Q
Q
Other operating income:
Foreign exchange gains
Dividends (note 10)
Other operating expenses:
Doubtful recovery accounts and securities
(see note 6)
Other:
Variances and losses in foreign currency
transactions
80,967
5,808
86,775
67,518
5,012
72,530
(99,815)
(119,085)
(1,530)
(101,345)
(14,570)
(21,038)
(140,123)
(67,593)
58

27
Administrative Expenses
The summary of the administrative expenses is shown below:
Years ended as of
December 31
2015
2014
Q
Q
Board of Directors
1,679
1,649
Officers and employees
320,482
306,411
Taxes, duties and contributions
21,443
17,283
Professional fees
20,490
14,659
Leasing (see note 34 )
42,306
41,327
Repairs and maintenance
42,925
39,745
Security and surveillance
40,308
40,700
Marketing
27,279
20,951
Insurance and bonds
6,476
6,544
Depreciations and amortizations
38,941
35,335
Stationery and office supplies
6,740
6,601
Sundry expenses (a)
149,857
148,982
718,926
680,187
(a) The summary of sundry expenses is shown below:
Shipping and handling

Infrastructure services
Energy
Other links
Counseling, courier and business support
services
Agency links
Phone
Mailing
Photocopying services
Clearing services
Common expenses
Publishing
Claims
Dues to associations
Parking lot
Other
Years ended as of
December 31
2015
2014
Q
Q
21,054
24,985
29,656
29,656
12,841
15,223
36,193
32,667
10,360
4,018
4,322
4,673
3,783
1,785
2,802
948
3,070
345
242
13,765
149,857
10,360
3,971
4,239
5,549
3,716
2,476
2,616
1,018
55
367
310
11,774
148,982
59

28
Extraordinary Income and Expenses, net

The summary of extraordinary income and expense is shown below:
Years ended as of
December 31
2015
2014
Q
Q
Income:
Recoveries (a)
Proceeds from sale of foreclosed assets
Gain on proceeds from property liquidation
Compensation for Damage
Other
Expenses:
Loss in liquidation, holding and exploitation of
foreclosed assets and loss in sale of furniture
Loss on valuation Current Goods
Loss on sale of furniture
Others
32,815
3,282
85
15
1,446
37,643
39,970
5,755
61
(5,721)
(292)
(1)
(404)
(6,418)
31,225
(1,246)
(1,246)
47,309
2,769
48,555
(a) This account is used to record the recoveries of the credit assets, which balances
had been written off from the loan portfolio and transferred to other
memorandum accounts for its control in previous years, as had been estimated
of doubtful recovery.
29
Income and Expenses from Prior Years, net

The summary of income and expenses from previous periods is shown as follows:
Years ended as of
December 31
2015
2014
Q
Q
Income:
Reversal of provisions
Expenses:
Supplementary provisions
5,551
5,551
4,599
4,599
(1,628)
3,923
(1,062)
3,537
60

30
Income Taxes
The income tax returns filed by the Bank for the years ended December 31, 2011
and 2015 are pending for review by the fiscal authorities. The fiscal period of Bank
ended December 31, 2013 were partially revised. The income tax returns filed by
the Leasing Entity for the years ended December 31, from 2012 to 2015, are
pending for review by the fiscal authorities. The fiscal period ended December 31,
2011 and 2010 were revised, the fiscal authorities have not yet issued resolutions
on these revisions (note 34).
The income tax returns filed by the Financing Company, the Credit Card Company,
the Brokerage Company, Agencia de Seguros y Fianzas Agromercantil, S.A. and
Asistencia y Ajustes, S.A. are pending for review by the fiscal authorities. The right
for review of the Guatemalan authorities prescribes after four years.
In conformity with the Book I of Income Tax Decree No. 10-2012 of the Congress
of the Republic of Guatemala dated March 5, 2012, the Group selected the tax
regime over profit activities, except for Agencia de Seguros y Fianzas
Agromercantil, S.A. which selected the Tax regime over total income. In addition,
the capital income and capital gains are taxable with a rate of 10%.
The income tax expense of the Banco Agromercantil de Guatemala, S.A. and
subsidiaries for the year ended 31, 2015 amounted to Q75,654 (Q60,842 in 2014)
which represents an effective rate of 20% (21.3% in 2014):
Years ended as of
December 31
2015
2014
Q
Q
Companies that adopted the regime on
lucrative activities a)
Agrovalores, S.A.
Tarjeta Agromercantil, S.A.
Companies that opted for the simplified
regime on income on lucrative activities b)
Agencia de Seguros y Fianzas, S.A.
73,998
1,240
185
40
42
5
75,510
58,997
1,425
130
70
38
4
60,664
144
75,654
178
60,842
61

a) The regime on profit activities established a taxable rate for 2015 of 25% (28%
for 2014).
b) Simplified optional regime on income from lucrative activities for the
determination of income tax at a rate of 5% on monthly income of Q30,000 plus
a 7% on the excess of the monthly taxable income on this amount, considering
as taxable income the total of income subject to tax.
c) In addition, income from capital and capital gains are taxed with a rate of 10%
and the distribution of dividends, earnings and profits is taxed with a rate of 5%.
The tax expenses differ from the one that would result from applying the
corresponding rates to the profit before Income Tax, according to the following
summary:
Years ended as of
December 31
2014
2015
Q
Q
Gross income (total income)
Less:
Exempt income and non-taxable income
Deductible expenses
Capital income
Taxable income
Tax rate
Income tax expense on income
applicable to profit activities
Simplified optional tax system:
Income before tax expenses
Exempt income and non-taxable income
Fixed tax payment income
Taxable income
Tax rate
Plus fixed tax expense
Simplified optional tax system expenses
Capital gains tax expense
Total income tax expense
Less:
Capital gains tax payments
Tax prepayments
Tax payable
2,072,636
1,873,880
(122,050)
(1,646,780)
2,400
301,426
25%
(115,286)
(1,542,342)
(127)
216,125
28%
75,357
60,515
2,048
(269)
(360)
1,419
7%
99
2,475
(386)
(360)
1,729
7%
121
18
117
18
139
180
75,654
188
60,842
(180)
(108)
75,366
(188)
(126)
60,528
62

31
Contingencies, Commitments, Other Liabilities and Memorandum

Accounts
This is an account that summarized all the memorandum account, in conformity
with the requirement of MIC. The summary of this account is as flows:
December 31
2015
2014
Q
Q
In local currency:
Third-parties administration (a)
Commitments and contingencies
Loan portfolio guarantees
Investments loan portfolio and other credit
assets classifications
Authorized financial obligations
Financial obligations
Amortized financial obligations
Own documents and securities issued
Other order accounts
Repo transactions
Securities and good pledge as collateral
Register accounts
Foreign currency:
Commitments and contingencies
Loan portfolio guarantees
Investments and loan portfolio and other
credit assets classification
Third-parties management
Margin for withdrawing
Own tittle-securities issued
Other memorandum accounts
Repo transactions
2,843,151
2,522,781
10,037,511
3,239,747
2,208,592
9,229,826
8,135,170
2,100,000
1,714,725
366,950
904,487
861,037
966,500
21,839
3,776,500
34,250,651
7,370,763
2,100,000
1,714,168
366,950
668,882
731,261
31,859
4,370,697
32,032,745
1,289,731
7,517,856
1,219,820
5,867,612
8,374,222
2,151,123
1,225,785
71,995
48,243
343,457
21,022,412
55,273,063
7,300,450
2,169,391
1,265,558
18,392
47,789
235,499
18,124,511
50,157,256
63

Memorandum and register accounts are used by the Group for control purpose only.
(a) The item third-parties administration includes trusts managed by the Group as
follows:
December 31
2015
2014
Q
Q
Local currency:
Management
Guaranty
Investment
Other
445,236
842,560
13,570
30,404
1,331,770
645,833
584,646
13,426
33,729
1,277,634
Commitments and Contingencies

In this account are recorded, if any, for control purposes: Guarantees granted
in order to secure third party obligations, loans approved pending formalization
and obligations of the Group.
Loan Portfolio Guarantees

In this account are recorded, if any, for control purposes: Title-securities that
guarantee loans granted by the Bank, mortgaged assets in favor of the Bank,
pledged assets in favor of the Bank and guarantees that the Bank receives in its
favor.
Investments, Loan Portfolio and Other Credit Assets Classification

In this account are recorded, if any, for control purposes: Credit assets in local
and foreign currency, classified by categories according to provisions of the
applicable regulations.
Third-Party Administration
Recorded in this account are, for control purposes: notes and securities the
received by the Group; mortgage certificates, equity securities that the Group
manages on behalf of third parties; loans portfolio managed on behalf of third
parties and, the equity interest in each of the trusts being managed.
Authorized Issuances of Financial Liabilities

In this account are recorded, if any, for control purposes: The value of the
authorizations of the Monetary Board for the emission of bonds and/or
financial promissory notes.
64
Financial Liabilities
In this account are recorded, if any, for control purposes: Insurance of bonds
and authorized promissory notes, provisional certificates granted and interest
coupons of the title-securities issued by the Group and the issuances of other
title-securities.
Amortized Financial Liabilities

In this account are recorded, if any, for control purposes: Bonds and promissory
notes, which have been redeemed as part of the service of the debt issued.
Own Documents and Securities Remitted

In this account, are recorded, if any, for control purposes: Documents and
securities that the Group grants or transfers to the legal department or third
parties and documents and securities that the Bank grants on consignment.
Other Memorandum Accounts

In this account are recorded, if any, for control purposes: Those entries applied
to the earnings accounts, which the specific law allows to differ in a greater
number of taxable periods and all those balances of the loan portfolio that after
have practiced all the corresponding collection actions and stopped receiving
interests of the portfolio in judicial collection and the approved credits pending
formalization.
Repo Operations
In this account are recorded, if any, the value stated in the contracts for repo
transactions.
Securities and Goods Granted in Guarantee

In this account are recorded, if any, for control purposes: Assets granted as
guarantee in favor of Central Bank and/or other financial entities, such as
guarantee on loans obtained and goods that constitute a specific third-parties
guarantee as a result of the positioning of financial obligations.
Margins to drawing
In this account are recorded, if any, for control purposes: Margins for with
drawing loans granted by the Central Bank, margins for withdrawing loans
granted by financial institutions and margins for withdrawing loans granted by
international bodies and foreign entities.
Register accounts
In this account are recorded, if any, for control purposes: Documents and
securities in custody, assets that have been totally depreciated or amortized and
existence of blank forms and not issue credit cards.
65

32
Concentration of Investments and Contingencies

The Law of Banks and Financial Groups, Decree 19-2002 came into force on June
1, 2002 and the reforms to this law contained in Decree No. 26-2012 became
effective as of April 1, 2013. According to these regulations, banks, financial
entities, offshore entities and companies specializing in financial services that are
part of financial groups, except for financial transactions they may carry out,
without limitation, in securities issued by the Ministry of Finance or the Bank of
Guatemala, may not carry out transactions that imply direct or indirect financing of
any nature, whichever the legal form adopted, such as but not limited to: bonds,
promissory notes, obligations and/or loans, or grant guarantees or endorsement that
in the aggregate exceed the percentages noted below:
Fifteen percent (15%) of the statutory equity for financing operations with
individuals or juridic persons of private nature or with a sole company or entity
of the Government or otherwise, an autonomous one. Transitory excesses
derived from interbank deposits of an operating nature or deposits and
investments that companies of the financial group may have in the Bank of their
financial group are exempt from this limit.
Thirty percent (30%) of the statutory equity for financing operations with two
or more wholly related or bounded parties forming part of a risk unit.
Thirty percent (30%) of the statutory equity for financing operations of two or
more wholly related or bounded parties forming part of a risk unit. Such
percentage may be increased up to fifty percent (50%) of the statutory equity,
if the excess is comprised of fully secured credit assets, during the term of the
loan, by term deposit certificates or financial promissory notes issued by the
institution itself, which should remain in its custody. In addition, it should be
agreed in writing that the guarantee shall be enforced without any formality in
case the debtor is sued or is in default.
The deposits and investments that companies maintain with their financial
groups bank shall not be computed for purposes of the limits set forth in this
section.
Thirty percent (30%) of the statutory equity of investments by offshore entities

in sovereign debt securities of countries other than Guatemala, in accordance
with the scale of limits established by the Monetary Board based on the
sovereign risk rating provided by risk rating companies recognized by the
Securities and Exchange Commission (SEC).
66
One hundred percent (100%) of the statutory equity of the set of investments
made by banks or financial companies in sovereign debt securities of countries
other than Guatemala, with the highest sovereign risk rating that in the
investment grade scale is granted by risk rating companies recognized by the
Securities and Exchange Commission (SEC).
When the entities exceed the limits established by the law, they should immediately
reduce such excess from their statutory equity without facing potential sanctions in
accordance with the law.
33
Formation of the Financial Group

Article 27 of the Law of Banks and Financial Groups, Decree 19-2002, establishes
the formation for Financial Groups, which should be organized under common
control by a holding company incorporated in Guatemala specifically for that
purpose, or a company that is responsible for the financial group, which in this case
is the Bank.
On September 9, 2004, Superintendence of Banks of Guatemala issued Resolution
No. 796-2004, which fully formalizes the formation of Grupo Financiero
Agromercantil.
The entities forming the regulated Group named Grupo Financiero Agromercantil
are:
Banco Agromercantil de Guatemala, S.A. (responsible company)
Mercom Bank Ltd.
Tarjeta Agromercantil, S.A.
Agrovalores, S.A.
As explained in note 2 b, Mercom Bank Ltd. and Seguros Agromercantil, S.A. have
not been included in the accompanying consolidated financial statements as of
December 31, 2015 and 2014 and for the years ended December 31, 2015 and 2014
herein presented.
67

The transactions carried out with companies of Grupo Financiero Agromercantil
included in the accompanying consolidated financial statements are summarized
below:
Years ended as of
December 31
2015
2014
Q
Q
Income:
Interest
Dividends
Services
Expenses:
Interest
Insurance premiums
4,160
12,448
16,608
330
3,840
11,520
15,690
2,203
11,958
14,161
2,097
12,356
14,453
Balances with companies of the Financial Group Agromercantil are summarized as

follow:
December 31
2015
2014
Q
Q
Assets:
Equity securities
Accounts receivable
Liabilities:
Deposits
Financial Expenses Payable
Accounts payable
20,028
313
20,028
206
121,633
306
466
122,933
386
In addition, there are other balances and transactions with other related parties,
which are summarized as shown in the next page:
68

The transactions are as follows:
Years ended
December 31,
2015
2014
Q
Q
Products:
Interest
Expenses:
Interest
Services
Fees
Other related parties:
Compensations directors and employees
(note 23 viii)
1,968
1,968
2,234
2,234
302
39,349
194
39,845
471
39,277
272
40,020
15,449
15,013
The balances are as follows:

2015
Q
Assets
Loan portfolio
Liabilities
Financial Expenses Payable
Deposits
2014
Q
26,489
29,945
7
13,945
16,550
The companies of the Financial Group have as forbidden:
To provide direct or indirect financing for the acquisition of shares representing

its equity, that of its holding company, of the responsible company or of any
other financial company of the Financial Group;
Carrying out financial transactions or providing services among group

companies in conditions where terms, rates, amounts, guarantees and fees are
different from the ones used in similar transactions with third parties. The
Monetary Board shall regulate the transactions such entities may engage in
between them; and,
Carrying out transactions and providing financial services that the Monetary
Board deems inconsistent with the financial business.
69

34
Commitments and Contingencies

Letters of credit
At December 31, 2015, the Group has contingent liabilities from letters of credit
issued in the amounting to Q2,000 and $55,038 equivalents to Q420,073
(Q8,754 and $69,917 equivalents to Q531,140 in 2014).
Trusts
As of December 31, 2015 the Group manages as trustee forty nine (49) trust
agreements (48 in 2014). In accordance with the Code of Commerce of
Guatemala, the trustee is liable to third parties for compliance of obligations
contained in the signed trust agreements, including compliance with the fiscal
obligations. From these trust funds two (2) are audited by independent auditors
and the government trust funds five (5) are audited by the General Accounts
Controllership of the Republic of Guatemala. In conformity with the lawyers
opinion and fiscal advisors of the Bank and the Financial Entity, as well as the
management, there are no known or potential litigation from the performance of
the Bank and the Financial Entity as fiduciaries.
Lease Contracts
The Group entered into operating lease contracts for the use of some branches,
furniture, equipment and other assets, in accordance with the conditions
stipulated therein. The 2015 related expense amounts to Q42,306 (Q41,327 in
2014).
Repo Liabilities
As of December 31, 2015 the Bank has reverse repos operations pending
settlement by Q480,000 and US$15,000 equivalents of Q114,485.
Pending Litigations
At December 31, 2015, there are fiscal appeals for tax pending resolution for an
amount of Q17,258 (Q19,183 in 2014) as a result of revisions made by the
Superintendence of Tax Administration.
Additional tax claimed are summarized below and do not include 100% fines
and compensation interests:
2015
Q
Legal:
Income taxes for fiscal 2007. File 2010-2144-0000126
Carried forward
December 31
2014
Q
82
82
70
2015
Q
Brought forward
82
Judicial procedure:
Income taxes for fiscal 2007. File 2010-2144-0000126
Income taxes for fiscal 1995. Process
No.286-2003.
No.297-2003.
December 31
2014
Q
-
157
157
1,880
1,880
2,007

No.206-2003.
4,667
4,667

No.155-99.
975
975

No.1013-2009-00060.
6,950
6,950

No.1013-2009-00060.
2,547
2,547
17,258
17,258
19,183
19,183
According to the opinion of the Groups legal counsel, fiscal advisors and
management, it is possible that the outcome of these litigation will be favorable.
For this reason there is no provision recorded in the accompanying consolidated
financial statements as of December 31, 2015 to cover possible losses from
these tax claims.
71

35
Net Position in Foreign Currency

The position in foreign currency is as follows:
2015
US$
December 31
2014
US$
Assets:
Cash and cash equivalents
Investments
Loan portfolio
Financial income receivable
Accounts receivable
Foreclosed assets
Investments in equity
Other investments
Total assets
113,595
114,453
1,082,454
2,692
264
1,834
1,747
1,317,039
136,476
149,788
953,739
2,876
815
2,098
1,545
66
1,247,403
Liabilities:
Deposits
Loans obtained
Financial expense payable
Accounts payable
Deferred credits
Other credit accounts
Total liabilities
Net position
591,754
638,862
11,805
4,199
6
1,340
1,247,966
69,073
545,650
582,253
9,898
6,488
9
1,549
1,145,847
101,556
36
Presentation of Financial Statements
37
Risk Management
According to the Agreement No. 06-2008 of the Superintendent of Banks, the

entities within a financial group, in addition to separate financial statements should
present consolidated statement of the companies that make up the Grupo Financiero
Agromercantils consolidated financial statements.
The Group is exposed to the following risks that, upon occurrence, might have a
significant adverse on its consolidated financial statements:
Credit Risk
It is the contingency that one institution incurs in losses as consequence that a
debtor or counterparty do not complies with its obligations in the agreed terms.
72
38
Liquidity Risk
It is the contingency that one institution does not have the capacity to fund
increases in asset or timely comply with its liabilities, without incurring in
financial costs out of the market.
Market Risk
It is the contingency that one institution incurs in losses as consequences of
adverse movements in the financial market prices. This includes the interest
rate and exchange rate differential risks.
Operating Risk
It is the contingency that one institution incurs in losses due to inadequate or
fails in processes, personnel, and internal systems or from external events. It
includes the technological and legal risks.
Country Risk
It is the contingency that an institution incurs in losses, associated with the
economic, social and political environment in the country where the debtor or
counterparty has its operations and/or domicile. It includes sovereign, political
and transference risk.
Assets Laundering and Terrorism Financing Risk

This is the contingency that the services and income of one institution are used
to cover financial assets, in a way that might be used without detecting the
illegal activity that generates them. In addition of having penalty implications
or admonitions for incompliance of the Law of Money and Other Assets
Laundering in force and the Law to Prevent and repress the Financing to
Terrorism, also puts in risk the image of the institution.
Regulatory Risk
It is the contingency that one institution incurs in losses for stop compliance
with the regulatory or legal requirements in the relevant jurisdiction in which
the institution operates.
Financial Instrument Contract

As part of the risk management policies of interest rate on long term loans obtained
from foreign banks, the Bank has performed swap operation through the
subscription of contracts on interest rate derivatives.
As of December 31, 2015 the Bank subscribed interest rate swap contract with
Citibank N.A. London. The contract has a notional of US$200,000 of fixed rate at
a fluctuating rate and maturity on April 10, 2019.
73

If the accounting records were according to International Financial Reporting
Standards (IFRS) and considering the conditions of international markets interest
rates as of December 31, 2015, this contract would have a reasonable gain value
unrealized if it had been settled early on that date of US$1,120 (unrealized loss of
US$453 in 2014).
39
Basis of Presentation
The accounting policies used by the Group for the preparation of the accompanying
consolidated financial statements differ, in some aspects, from the international
financial reporting standards as summarized below:
a.
Income recognition on a cash basis

MIC provides that income for interest on the loan portfolio must be recognized
by the accounting method of cash received.
IFRS provide that this income should be recognized according using the
accrual accounting method.
b. Valuation of credit assets

MIC provides that in the estimate for valuation of credit assets including
generic and specific reserves should total the equivalent of one hundred percent
of the past due loan portfolio. The sum of these reserves may in no case be less
than the equivalent of one point two five percent (1.25%) of the total of gross
credit assets.
IFRS provide that impairment studies should be made of credit assets at least
once a year and reserves should be created for credit risks considered
necessary.
c.
Valuation of extraordinary assets foreclosed assets

MIC provides that assets adjudicated judicially must be accounted for initially
at value established in the liquidation approved by the judge plus taxes and
transfer-of-domain expenses. Subsequently, entities must value the
extraordinary assets in a period not exceeding three (3) months from the date
of acquisition of the property, in order to adjust the value they have recorded
in the accounts to the value established in the said valuation.
Extraordinary assets that the banks hold or acquire must be sold within a period
of two (2) years counting as date of acquisition. If there are no bidders on the
date, time and place appointed for the auction, a new auction must be held every
three (3) months. The basis for this and subsequent auctions must be a price
that will be less, each time, than the previous sum by at least ten (10) percent
of the base of the first auction.
74

IFRS indicate that a non-current asset will be classified as held for sale if its
book value can be recovered fundamentally through a sales transaction, instead
of continued use.
Non-current assets classified as maintained for sale will be measure at lesser
value than its contribution in books or at is par value less the selling costs.
IFRS does not allow capitalizing expenses and costs for holding.
d. Determination of depreciation of property and equipment
MIC indicates the recording of the depreciation of property and equipment and
for the calculation of such depreciation the rates allowed for fiscal purposes is
used.
The IFRS establish that fixed assets should be depreciated throughout their
useful life.
e.
Recording of depreciation of revaluated assets

MIC provides that the depreciation of revalued assets be debited to equity.
IFRS provide that charges for depreciation of all fixed assets should be
recognized in the result for the period and subsequently adjusted between the
equity accounts affected.
f.
Repo operations
MIC provides that investments that guarantee repo operations be reduced from
assets and recorded in memorandum accounts.
IFRS establishes that while the property, risks and benefits of an investment
are held, this is recorded in accounting financial asset; recording the contracted
obligation by the received counterparty in the repo operation.
g. Costs of transactions associated to the loan portfolio, to loans obtained or other

obligations
According to MIC, associated costs of transactions are recorded in results when
incurred.
According to IFRS, transaction costs should form part of the determination of
the effective interest rate and amortized during the term of the financial asset
or liability.
h. Employee benefits
MIC contemplates for the creation of a reserve for labor indemnities.
IFRS provide that termination benefits be recorded as liabilities at the time
when the labor relationship ends.
75

i.
Recording and presentation of other reserves in equity

MIC provides that certain liability reserves, such as reserves for contingencies,
valuation of assets of doubtful recovery and provisions for indemnities be
recorded in equity.
IFRS provide that this type of reserves should be recorded in liabilities or
regularizing assets, as may be applicable, with charge to results for the year.
Reserves for contingencies are not allowed.
j.
Adjustments to prior periods

MIC establishes that adjustments to previous years should be presented in the
income statement of the year as income and expenses of previous periods.
IFRS establish that the financial statements for the current year and previous
years presented must be restated retroactively correcting the error. The effect
of the correction of an error in previous periods will not be included in the
result of the period in which the error is discovered.
k. Extraordinary income and expenses

MIC contemplates the presentation of extraordinary income and expenses in
profit and loss.
IFRS establish that entries of income or expenses should not be presented as
extraordinary entries in the profit and loss statement and other integral result
of the period or in the notes.
l.
Consolidation of financial statements

MIC provides that the Bank must make consolidation of the financial
statements of the companies that make up the Financial Group authorized by
the Monetary Board.
IFRS indicate that the consolidation is based on the concept of control and it is
necessary to analyze case by case, not only of those companies in which there
is majority share participation and that are within the regulated Group.
m. Notes to the Financial Statements

MIC does not require minimum mandatory disclosures to the financial
statements.
The IFRS establishes that in the aggregate the financial statements include,
besides the basic financial statements, the disclosure of the accounting policies
and explanatory notes.
76

n. Some disclosures required by IFRS 7, 12 and 13 and IAS 39 (Financial
Instruments) mainly in reference to the issues included as follows:
Classification of assets and liabilities according to its maturity and

disclosures referring to financial instruments (for example: Relevance of
the financial instruments and the nature and scope of the risks from such
financial instruments).
Registry regarding derivative contracts of financial instruments.
Shares in other entities.
Fair value measurement.
o. Use of accounting
In the creation of accounts needed to record transactions not covered by the
MIC, entities must first obtain the authorization from the Superintendence of
Banks.
IFRS dot not include a nomenclature of accounts. IFRS provide that operations
must be recorded according with its substance.
p. Deferred income tax
MIC does not contemplate in Section IV. Description of Accounts and
Registration Procedure, the accounting for deferred income taxes, which is
required when temporary differences are identified in accordance with IFRS.
q. Value Impairment of non-financial assets
MIC does not require carrying out an assessment of impairment of nonfinancial assets.
IFRS establishes that the entities must assess at the end of each year if there is
any indication of asset impairment value of any asset. If such indication exists,
the entities will estimate its recoverable amount. The carrying amount of an
asset will be reduced to its recoverable value if, and only if, the recoverable
amount is less than the carrying amount. That reduction is an impairment loss.
77

Financial Audited Dic15

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Financial Audited Dic15

Transféré par

Droits d'auteur :

Formats disponibles

Banco Agromercantil de Guatemala, S.A.

Consolidated Balance Sheets

Liabilities, Other Credit

Deposits (note 14)

See accompanying notes to the consolidated financial statements.

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Consolidated Statements of Income

Financial income (note 24)

Income and expenses from services,

Other operating income and

See accompanying notes to the consolidated financial statements.

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Consolidated Statements of Changes in Shareholders Equity

Additional paid-in capital (note 22):

Reserve for future dividends

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Consolidated Statements of Changes in Shareholders Equity

Asset revaluation reserve (notes 12

Valuation of doubtful recovery assets

Gains or loss from changes in the market

See accompanying notes to the consolidated financial statements.

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Consolidated Statements of Cash Flows

Cash flows from operating activities:

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Consolidated Statements of Cash Flows (Continued)

See accompanying notes to the consolidated financial statements.

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to the Consolidated Financial Statements

Banco Agromercantil de Guatemala, S.A. was incorporated on October 18,

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to the Consolidated Financial Statements

The Brokerage Company was incorporated on October 6, 1987. Its main

Agencia de Seguros y Fianzas Agromercantil, S.A. was incorporated on

The entities Agencia de Seguros y Fianzas Agromercantil, S.A. and Asistencia y

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to the Consolidated Financial Statements

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to the Consolidated Financial Statements

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to the Consolidated Financial Statements

Significant Accounting Policies

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to Consolidated Financial Statements

Securities under repurchase/resell agreements

iii. Estimation for Investments Valuation

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to Consolidated Financial Statements

Property and Equipment

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to Consolidated Financial Statements

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to Consolidated Financial Statements

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to Consolidated Financial Statements

Interests accrued not yet collected on bonds or documents issued by the

Interests accrued on securities issued by foreign governments or foreign

Interest, commissions, rents and other income on credit card, factoring

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to Consolidated Financial Statements

Reserve for Future Dividends

Reserve for Contingencies

Banco Agromercantil de Guatemala, S.A. and Subsidiaries

Notes to Consolidated Financial Statements